HomeworkLib
Question

Explain in detail, using the relevant journal entries, how the realisation of profit affects the calculation of profit and retained earnings for the NCI for the year ended 30 June 2018 using the follo...

Explain in detail, using the relevant journal entries, how the realisation of profit affects the calculation of profit and retained earnings for the NCI for the year ended 30 June 2018 using the following information. Rose Ltd owns 90% of the share capital of Petal Ltd. The income tax rate is 30%. In January 2017, Petal Ltd sells inventory to Rose Ltd for $25 000 cash. This inventory had previously cost Petal Ltd $15 000, and remains unsold by Rose Ltd at the end of the period 30 June 2017. In the year ended 30 June 2018, all of the inventory is sold by Rose Ltd.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

aplan in detail, uing the geleu sutained Ran kc yeaג ended 30 June corne tx.rate ㅚ30.n In Tan hed pret s,o00, and umain unudd4 6300 tanlacen on entry Because all hi t is use Sod n (9000 Corolidntec 630o TOD

0 0
Add a comment
Know the answer?
Add Answer to:
Explain in detail, using the relevant journal entries, how the realisation of profit affects the calculation of profit and retained earnings for the NCI for the year ended 30 June 2018 using the follo...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Explain in detail, using the relevant journal entries, how the realisation of profit affects the calculation...

    Explain in detail, using the relevant journal entries, how the realisation of profit affects the calculation of profit and retained earnings for the NCI for the year ended 30 June 2018 using the following information. Rose Ltd owns 90% of the share capital of Petal Ltd. The income tax rate is 30%. In January 2017, Petal Ltd sells inventory to Rose Ltd for $25 000 cash. This inventory had previously cost Petal Ltd $15 000, and remains unsold by Rose...

  • During the year ended 30 June 2018, Acer Ltd sold inventory to its wholly owned subsidiary...

    During the year ended 30 June 2018, Acer Ltd sold inventory to its wholly owned subsidiary Carlon Ltd for $50 000 cash. The items previously cost Acer Ltd $35 000. The inventory remains unsold by Carlon Ltd at the end of the period. The tax rate is 30%. Explain in detail, line by line, the journal entry required to eliminate the intragroup transaction for the year ending 30 June 2018.

  • QUESTION 7 Lady Ltd owns 25% of Gaga Ltd. Gaga’s profit after tax for the year ended 30 June 2017 is $50,000. The tax rate is 30%. During the year ended 30 June 2017, Lady sold $10,000 worth of invent...

    QUESTION 7 Lady Ltd owns 25% of Gaga Ltd. Gaga’s profit after tax for the year ended 30 June 2017 is $50,000. The tax rate is 30%. During the year ended 30 June 2017, Lady sold $10,000 worth of inventory to Gaga. These items had previously cost Lady $7,000. All the items remain unsold by Gaga at 30 June 2017. Lady’s share of Gaga’s profit for the year ended 30 June 2017 is: $11,975. $11,750. $8,225. $9,275.

  • QUESTION 7 Lady Ltd owns 25% of Gaga Ltd. Gaga’s profit after tax for the year...

    QUESTION 7 Lady Ltd owns 25% of Gaga Ltd. Gaga’s profit after tax for the year ended 30 June 2017 is $50,000. The tax rate is 30%. During the year ended 30 June 2017, Lady sold $10,000 worth of inventory to Gaga. These items had previously cost Lady $7,000. All the items remain unsold by Gaga at 30 June 2017. Lady’s share of Gaga’s profit for the year ended 30 June 2017 is: $11,975. $11,750. $8,225. $9,275.

  • During an audit of the inventory records of Winthrop Ltd for the year ended June 30,...

    During an audit of the inventory records of Winthrop Ltd for the year ended June 30, 2019, the auditor discovered that the ending inventory balance was overvalued by $180,000. On further investigation, it was discovered that the ending inventory for the previous year was correctly counted and valued, but that the inventory balance as at June 30, 2017, was undervalued by $500,000. Spurred on by the concern for errors undetected in previous periods, a thorough investigation was carried out as...

  • 1) On 1 July 2018 Pumba Ltd acquired 85% of the shares in Timon Ltd by...

    1) On 1 July 2018 Pumba Ltd acquired 85% of the shares in Timon Ltd by issuing 520,000 shares. At the date of acquisition the share price of Pumba Ltd was $3.20 per share and the share price of Timon Ltd was $2.40 per share. The equity of Timon Ltd at 1 July 2011 consisted of the following: Share capital                  $902,000 Retained earnings         $550,000 All identifiable net assets of Timon Ltd were recorded at fair value except for the carrying amount of...

  • A Ltd reported the following information for the year ended 30 June 2018: Accounting profit before...

    A Ltd reported the following information for the year ended 30 June 2018: Accounting profit before tax was 600 000. A building was purchased on 1 July 2015 for $1 000 000. It is depreciated at 10% straight-line with zero residual value for accounting purpose and 20% straight-line with zero residual value for tax purposes. Accounts receivable (gross): opening balance, 350 000; closing balance, 500 000. The allowance for doubtful debts: opening balance, 8 000; closing balance, 10 000. During...

  • ABC Ltd has provided the following information: Income Statement for the year ended 30 June 2018...

    ABC Ltd has provided the following information: Income Statement for the year ended 30 June 2018 $000 Revenue 25460 Cost of Sales 9810 Gross Profit 15650 Depreciation 7860 Other Expenses 1080 Gain on disposal of Non Current assets 150 6860 Operating Profit Finance Charges 2250 Profit before Tax 4610 Taxation 1030 Profit for the year 3580 Statement of Changes in Equity for the year ended 30 June 2018 Retained Earnings 01.07.17 8210 Profit for the year 3580 11790 Dividends paid...

  • The following financial data relate to Big Bang Pty Ltd for the years ended 30 June Year 2019 and 30 June Year 2018. Year 2018 $490 000 250 000 $630 000 Net credit sales Cost of goods so...

    The following financial data relate to Big Bang Pty Ltd for the years ended 30 June Year 2019 and 30 June Year 2018. Year 2018 $490 000 250 000 $630 000 Net credit sales Cost of goods sold Cash Accounts receivable 290 000 12 000 18 000 60000 70 000 150 000 81 000 130 000 Inventory Current liabilities 105 000 Additional information: The amount of Accounts receivables at 30 June Year 2017 was $78 000 (net). The inventory figure...

  • You are a senior on the audit for the year ended 30 June 2018 of Office...

    You are a senior on the audit for the year ended 30 June 2018 of Office Supplies Ltd, A Perth-based manufacturer of customised office furniture. You are carrying out audit checks on cut-off at year end. Office Supplies maintains details of stock quantities on its computer and conducts a ‘wall-to-wall’ count of inventory when all operations cease at 30 June, and all inventory is counted in a single stocktake. The bulk of inventory is held in two adjoining warehouses owned...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT