User Account

All Pages

Prepare the consolidation worksheet entries for liala ltd

Assignment Help Financial Accounting
Reference no: EM132555222

Liala Ltd acquired all the issued shares of Jordan Ltd on 1 January 2015. The following transactions occurred between the two entities:

  • On 1 June 2016, Liala Ltd sold inventory to Jordan Ltd for $12,000, this inventory previously costed Liala Ltd $10,000. By 30 June 2016, Jordan Ltd had sold 20% of this inventory to other entities for $3,000. The other 80% was all sold to external entities by 30 June 2017 for $13,000.
  • During the 2016-17 period, Jordan Ltd sold inventory to Liala Ltd for $6,000, this being at cost plus 20% mark-up. Of this inventory, 20 % remained on hand in Liala Ltd at 30 June 2017. The tax rate is 30%.

Required:

Question (i) Prepare the consolidation worksheet entries for Liala Ltd at 30 June 2017 in relation to the intragroup transfers of inventory.

Question (ii) Compute the amount of cost of goods sold to be reported in the consolidated income statement for 2017 relating to the relevant intra-group sales.

Reference no: EM132555222

Questions Cloud

What share price would expect after the announcement : With the new expansion, Cooperton's dividends are expected to grow at a 5% rate. What share price would you expect after the announcement?
What are the major parts of time value of money : What are the major parts of time value of money? Discuss in detail why present value is called discounting
What is the price of the bond immediately after makes : Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment?
Excluding the cost of the option : Suppose a US equity portfolio is currently worth US$50 million and the S&P500 index is at 1000 points. If the value
Prepare the consolidation worksheet entries for liala ltd : Evaluate the amount of cost of goods sold to be reported in the consolidated income statement for 2017 relating to the relevant intra-group sales.
Implement for monitoring and reviewing policies : Describe the general procedure you would follow in an organisation for seeking approval to change current policies and List three approaches you could apply
What will be the 1 year forward price for gold : The price of a zero coupon maturing in 1 year is $ 0.95. What will be the 1 year forward price for gold?
Demonstrate what would the journal entry be : What would the journal entry be? Trademark purchased on December 31, 2017 is expected to have an economic life of 10 years.
Indifferent between the two types of risk : As a shareholder, should you be indifferent between the two types of risk?

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