User Account

All Pages

Do agree treatment will eliminate intragroup sales

Assignment Help Financial Accounting
Reference no: EM132962014

Harley Ltd owns 100% of Quinn Ltd.

  • During the financial year ending 30 June 2020, Harley Ltd sold inventory, originally costing $24 000, to Quinn Ltd for $30 000. Harley Ltd also sold inventory, originally costing $120 000, outside the group for $360 000.
  • Quinn Ltd sold inventory, originally costing $15 000, to Harley Ltd for $20 000. Quinn Ltd made no sales outside the group.

To eliminate intragroup transactions for the year, Quinn Ltd's accountant processes the following entry in the general ledger of Quinn Ltd:

Dr Sales $20 000

Cr Cost of sales $20 000

Problem 1: Do you agree this treatment will eliminate intragroup sales of inventory for the year ending 30 June 2020? If so, why? If not, provide both an explanation of why not and the correct treatment.

Reference no: EM132962014

Questions Cloud

What is the financial advantage or disadvantage : If Collins Co. accepts the order, it will have no effect on other customers. What is the financial advantage or disadvantage of accepting the special order
How would fcl record the transaction : How would FCL record this transaction? FinCore Limited ("FCL") was recently incorporated and did not have excess cash on hand.
Prepare consolidation journal entries for year ending june : Gotham Ltd purchased 100% of the issued shares, Prepare consolidation/elimination journal entries for the year ending 30 June 2019 assuming a tax rate of 30%.
What will be the increase in judys taxable income : At the beginning of the year, she had a balance of $13,000 in her cumulative eligible capital account. What will be the increase in Judys taxable income
Do agree treatment will eliminate intragroup sales : Do you agree this treatment will eliminate intragroup sales of inventory for the year ending 30 June 2020? If so, why? If not, provide both an explanation
Calculate the roi and residual income for each division : Calculate the ROI and residual income for each division of Lovely and briefly explain which manager will get the bonus. What are the advantages of each measure
Cloud security threats : What cloud security threats have the potential to affect a university's staff and its students
Main reasons for hris implementations failure : Analyze the main reasons for HRIS implementations failure. How can we prevent these from affecting us?
Calculate how much siti have in saving account : She plans to use the money to pay for her final year fees at the university. calculate how much siti have in her saving account after 36 months

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd