Reference no: EM132818112
Question - Emu Ltd owns all of the shares of Cassowary 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) Emu Ltd sold inventory to Cassowary Ltd on 1 September 2018 for $27 000. This inventory had cost Emu Ltd $18 000. One-third of the inventory was sold by Cassowary Ltd to Goanna Ltd for $13 000 and one-third to Galah Ltd for $13 200.
(b) Emu Ltd manufactures certain items which it then markets through Cassowary Ltd. During the current period, Emu Ltd sold items for $18 000 to Cassowary Ltd at cost plus 20%. Cassowary Ltd has sold 75% of these transferred items at 30 June 2019.
(c) During June 2019, Cassowary Ltd declared a $2000 dividend. The dividend was paid in August 2019.
(d) In January 2019, Cassowary Ltd paid a $4500 interim dividend.
(e) Emu Ltd sold a warehouse to Cassowary Ltd for $150 000. This had originally cost Emu Ltd $123 000. The transaction took place on 1 January 2018. Cassowary Ltd charges depreciation at 5% p.a. on a straight-line basis.
Required - 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%.
|
How many hours did spend complaining on social media
: If, in the last month, he spent 480 hours complaining about how the election was stolen from him, how many hours did he spend complaining on social media?
|
|
What is the key threat to the auditor independence
: The block consists of 15 two-bedroom apartments, with indoor pool, gym and sauna facilities. What is the key threat to the auditor independence
|
|
What you observed when analyzing the lesson
: Discuss what you learned in the video about setting up a non-threatening learning environment that does not isolate students. For example, what connections can.
|
|
Which would recommend as a better place to work at
: Low growth opportunities versus a firm with uncertain financials but high growth opportunities, which would you recommend as a better place to work at?
|
|
Prepare the consolidation worksheet adjusting entries
: Prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019
|
|
How principles of udl support career and technical education
: This discussion is an opportunity for you to evaluate how the purposeful integration of technology in instruction and assessment supports student acquisition.
|
|
Determine the balance in each company bonds payable account
: Determine the balance in each company's Bonds Payable account on December 31, 2021. Record the issue of the bonds by each company on January 1, 2021.
|
|
Draw the image formation on the diagram
: Draw the image formation on the diagram - What is the speed of transverse waves on this string and What is the sound intensity level (dB) at a distance of 30 m
|
|
Prepare a direct materials budget for April, May, and June
: Beginning raw materials inventory for April was 686 pounds. Assume direct materials cost $6 per pound. Prepare a direct materials budget for April, May and June
|