On January 1, 2014, Kardashian Company purchased all of the stock of West Company. In 2014 Kardashian Company sold inventory to West Company on credit which was unsold and unpaid for at the end of 2014. Kardashian had purchased this inventory for $40,000 and sold it to West for $60,000. In 2015, West sold 60% of this inventory to its customers for $50,000 and paid ? of the amount due Kardashian Company. In 2016, West sold the remaining inventory to outsiders for $40,000 and paid Kardashian Company the remaining balance.
REQUIRED:
A.) MAKE THE JOURNAL ENTRIES KARDASHIAN MAKES WHEN IT SELLS THE MERCHANDISE TO WEST COMPANY...KARDASHIAN USES PERPETUAL INVENTORY
B.) MAKE THE JOURNAL ENTRY WEST MAKES WHEN IT BUYS THE INVENTORY FROM KARDASHIAN COMPANY, IT ALSO USES PERPETUAL INVENTORY
C.) MAKE THE NECESSARY WORKSHEET ENTRIES IN 2014 FOR THE INVENTORY
D.) MAKE THE ENTRIES KARDASHIAN MAKES IN 2015 WHEN IT RECEIVES PAYMENT FROM WEST
E.) MAKE THE JOURNAL ENTRY WEST MAKES IN 2015 WHEN IT PAYS KARDASHIAN
F.) MAKE THE JOURNAL ENTRIES WEST MAKES IN 2015 WHEN IT SELLS 60% OF THE INVENTORY TO OUTSIDERS
G.) MAKE THE CONSOLIDATED WORKSHEET ENTRIES NEEDED IN 2015
H.) MAKE THE JOURNAL ENTRIES WEST MAKES IN 2016 WHEN IT SELLS THE REMAINING INVENTORY
I.) MAKE THE CONSOLIDATED WORKSHEET ENTRIES NEEDED IN 2016