L Ltd owns 100% equity of S Ltd. The following inter-entity transaction took place between L...
L Ltd owns 100% equity of S Ltd. The following inter-entity transaction took place between L Ltd and S Ltd. During the period, S Ltd sells inventory to L Ltd at a sales price of $300 000. S Ltd marks up its inventory by 50%. At the end of the period, 25% of this inventory is still on hand with L Ltd. The tax rate is assumed to be 30%. What will be the ‘CR’ to the inventory asset account in the consolidation adjustment journal? A) $25 000 B) $40 000 C) $28 000 D) None of the above
Homework Answers
Calculation of inter entity transactions profit : (300000/150*50)
=$100000
However the 25% inventory is still in hand of L ltd. That means 25% profit yet not recognized,hence we need to be nullified it's effect while consolidating accounts. Hence 25% of $100000 cr need to be given to inventory account. That means $25000 need to be given credit.
Hence option A) is correct answer.
Add Answer to:
L Ltd owns 100% equity of S Ltd. The following inter-entity transaction took place between L...
Question 6 (10 marks) Kangaroo Ltd owns all of the share capital of Wallaby Ltd. In...
Question 6 (10 marks) Kangaroo Ltd owns all of the share capital of Wallaby Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2020. Assume an income tax rate of 30%. (a) During the year ending 30 June 2020, Wallaby Ltd sold $120 000 worth of inventory to Kangaroo Ltd. Wallaby Ltd recorded an $18 000...
Paused : Question 5 Week 9 (11 marks) (a) Jessica Ltd sold inventory during the current...
Paused : Question 5 Week 9 (11 marks) (a) Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for $8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows: Sales Cost of Sales Inventory Dr15 000 Cr 13 000...
Amber Ltd owns all of the shares of VStone Ltd. In relation to the following intragroup...
Amber Ltd owns all of the shares of VStone Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%. (a) On 1 January 2018, Amber Ltd sold inventory costing $6000 to VStone Ltd at a transfer price of $9000. On 1 September 2018, VStone Ltd sold half these items...
On 1 July 2015, Fluffy Ltd acquired all the issued shares of Glider Ltd. Fluffy Ltd...
On 1 July 2015, Fluffy Ltd acquired all the issued shares of
Glider Ltd. Fluffy Ltd paid $30 000 in cash and 20 000 shares in
Fluffy Ltd valued at $3 per share. At this date, the equity of
Glider Ltd consisted of $66 000 share capital and $6000 retained
earnings.
At 1 July 2015, all the identifiable assets and liabilities of
Glider Ltd were recorded at amounts equal to their fair values
except for:
Additional information
(a) Fluffy Ltd...
On 1 July 2017, Parent Ltd acquired all the shares of Son Ltd, on a cum-div....
On 1 July 2017, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $3,230,000. At this date, the equity of Son Ltd consisted of: $1,200,000 Share capital -600 000 shares General reserve Retained earnings 500,000 900,000 At the acquisition date, Son Ltd reported a dividend payable of $50,000 and its assets included $100, 000 of recorded goodwill. The dividend payable at the acquisition date was subsequently paid in August 2017. On 1 July 2017, all...
Please solve using the shown Workbook in excel Balance Sheet & Income Statement Coast Ltd., which...
Please solve using the shown Workbook in excel
Balance Sheet & Income Statement Coast Ltd., which has just started trading on 1 January 2019. has the following account balances prior to the recording of the final month of the year: Account Balances as at 30 November 2019 Account $ Cash $5 300 Accounts receivable $6 400 Stock of Supplies $11 600 Property, Plant & Equipment -cost $36 000 Accounts payable $3 000 Interest payable S 100 Bank Loan $12 000...
Please show in excel like above, thanks! Balance Sheet & Income Statement Coast Ltd., which has...
Please show in excel like above,
thanks!
Balance Sheet & Income Statement Coast Ltd., which has just started trading on 1 January 2019. has the following account balances prior to the recording of the final month of the year: Account Balances as at 30 November 2019 Account $ Cash $5 300 Accounts receivable $6 400 Stock of Supplies $11 600 Property, Plant & Equipment -cost $36 000 Accounts payable $3 000 Interest payable S 100 Bank Loan $12 000 Contributed...
NewCat Ltd, a manufacturer and retailer for pet products, commenced operations on 1 July, 2018 by issuing 100 000 $2.00 shares, payable in full on application. There were no share issue costs For...
NewCat Ltd, a manufacturer and retailer for pet products, commenced operations on 1 July, 2018 by issuing 100 000 $2.00 shares, payable in full on application. There were no share issue costs For the year ending 30 June 2019, the company recorded the following aggregate transactions S'000 4 265 1 800 723 285 130 95 212 210 120 Accounts les Cost of sales Other income Administration charges Selling and distribution expenses Employee entitlement expenses - (selling) Wages and salaries -...
opening balance sheet The following are a series of transactions that took place for Odin Enterprises,...
opening
balance sheet
The following are a series of transactions that took place for Odin Enterprises, LLC during 2018. Please prepare the following information as it relates to these transactions: A) Prepare the Journal Entries associated with the transactions B) Enter the Journal Entries you created in A) above into T-Accounts showing ending balances if more than one transaction C) Prepare any appropriate Adjusting Journal Entries related to the transactions at the end of the 2018 D) Prepare the Balance...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred the following cost in its manufacturing operations GH¢ Cost of material purchase 20,000 Import duties 400 Trade discount @10% of purchase cost Cash discount 500 Irrecoverable taxes 1,000 Salary of factory plant operator 2,500 Direct labour 5,000 Salary of factory supervisor 4,000 Cost of expected production losses 800 Administrative overhead (Note) 16,000 Cost of storage of raw material for further processing 2,000 Marketing cost...
Question 6 (10 marks) Kangaroo Ltd owns all of the share capital of Wallaby Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2020. Assume an income tax rate of 30%. (a) During the year ending 30 June 2020, Wallaby Ltd sold $120 000 worth of inventory to Kangaroo Ltd. Wallaby Ltd recorded an $18 000...
Paused : Question 5 Week 9 (11 marks) (a) Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for $8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows: Sales Cost of Sales Inventory Dr15 000 Cr 13 000...
On 1 July 2015, Fluffy Ltd acquired all the issued shares of
Glider Ltd. Fluffy Ltd paid $30 000 in cash and 20 000 shares in
Fluffy Ltd valued at $3 per share. At this date, the equity of
Glider Ltd consisted of $66 000 share capital and $6000 retained
earnings.
At 1 July 2015, all the identifiable assets and liabilities of
Glider Ltd were recorded at amounts equal to their fair values
except for:
Additional information
(a) Fluffy Ltd...
On 1 July 2017, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $3,230,000. At this date, the equity of Son Ltd consisted of: $1,200,000 Share capital -600 000 shares General reserve Retained earnings 500,000 900,000 At the acquisition date, Son Ltd reported a dividend payable of $50,000 and its assets included $100, 000 of recorded goodwill. The dividend payable at the acquisition date was subsequently paid in August 2017. On 1 July 2017, all...
Please solve using the shown Workbook in excel
Balance Sheet & Income Statement Coast Ltd., which has just started trading on 1 January 2019. has the following account balances prior to the recording of the final month of the year: Account Balances as at 30 November 2019 Account $ Cash $5 300 Accounts receivable $6 400 Stock of Supplies $11 600 Property, Plant & Equipment -cost $36 000 Accounts payable $3 000 Interest payable S 100 Bank Loan $12 000...
Please show in excel like above,
thanks!
Balance Sheet & Income Statement Coast Ltd., which has just started trading on 1 January 2019. has the following account balances prior to the recording of the final month of the year: Account Balances as at 30 November 2019 Account $ Cash $5 300 Accounts receivable $6 400 Stock of Supplies $11 600 Property, Plant & Equipment -cost $36 000 Accounts payable $3 000 Interest payable S 100 Bank Loan $12 000 Contributed...
NewCat Ltd, a manufacturer and retailer for pet products, commenced operations on 1 July, 2018 by issuing 100 000 $2.00 shares, payable in full on application. There were no share issue costs For the year ending 30 June 2019, the company recorded the following aggregate transactions S'000 4 265 1 800 723 285 130 95 212 210 120 Accounts les Cost of sales Other income Administration charges Selling and distribution expenses Employee entitlement expenses - (selling) Wages and salaries -...
opening
balance sheet
The following are a series of transactions that took place for Odin Enterprises, LLC during 2018. Please prepare the following information as it relates to these transactions: A) Prepare the Journal Entries associated with the transactions B) Enter the Journal Entries you created in A) above into T-Accounts showing ending balances if more than one transaction C) Prepare any appropriate Adjusting Journal Entries related to the transactions at the end of the 2018 D) Prepare the Balance...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred the following cost in its manufacturing operations GH¢ Cost of material purchase 20,000 Import duties 400 Trade discount @10% of purchase cost Cash discount 500 Irrecoverable taxes 1,000 Salary of factory plant operator 2,500 Direct labour 5,000 Salary of factory supervisor 4,000 Cost of expected production losses 800 Administrative overhead (Note) 16,000 Cost of storage of raw material for further processing 2,000 Marketing cost...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago