User Account

All Pages

Prepare the journal entries required

Assignment Help Accounting Basics
Reference no: EM132987863

Question - On 1 July 2019, Canola Ltd acquired 100% of the share capital to gain control of Palm Ltd. The following intra-group transactions occurred during the financial year ending 30 June 2020.

(i) During the 2019 - 2010 financial year, Canola Ltd sold inventory to Palm Ltd for $1,000,000. Canola Ltd purchased this inventory at $700,000. By 30 June 2020, Palm Ltd has sold 70% of that inventory to an outside third party.

(ii) Palm Ltd sold a vehicle to Canola Ltd for $100000. The vehicle had been fully depreciated by Palm Ltd at 30 June 2020 and valued at $0 on Palm's books.

Required -

a) Prepare the journal entries required to eliminate the intra-group transactions above. Ignore any tax effects.

b) When are consolidated profits recorded for inventory transfers within the group?

Reference no: EM132987863

Questions Cloud

Is dlsud a world class company : Is DLSUD a world class company? Identify at least 5 things that DLSUD currently has that can lead it achieve world class status
How do changes in technology affect service efficiency : How do changes in technology affect service delivery, effectiveness, and efficiency? How can a shared service delivery model benefit the employees?
Emergency delivery services : Our company is an e-commerce company that sells formal wear online. We provide emergency delivery services.
Brick-and-mortar business into an e-business : Your local seamstress has contracted you to advise her about transforming her brick-and-mortar business into an e-business.
Prepare the journal entries required : Palm Ltd sold a vehicle to Canola Ltd for $100000. Prepare the journal entries required to eliminate the intra-group transactions above
Influence of the pandemic on commerce : How have commodities in the U.S. been affected by the recent pandemic? How have the people in other countries been affected by the influence of the pandemic on
Explore entrepreneurial approaches for potential business : Explore entrepreneurial approaches for their potential business application R 1. with each marketing opportunity, describe innovative approaches to increasing p
Financial investment in corporation : The responsibility of the directors of a corporation is to provide a return to shareholders on their financial investment in the corporation;
How do changes in technology affect service delivery : How do changes in technology affect service delivery, effectiveness, and efficiency? What are some challenges of a shared service delivery model?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Posting the journal to the Columns ledger account

Suhendi transfers cash from a personal account to a company account amounting to Rp 80,000,000. Posting the journal to the 4 Columns ledger account

  13 rd of the contents of a container evaporated on the 1st

13 rd of the contents of a container evaporated on the 1st day. 34th of the remaining contents of the container

  Calculate the acquisition cost of the gizmo machine

Calculate the acquisition cost of the Gizmo Machine that will be used as the base for future depreciation charge

  Identifying the tax issues

Orange has a $20,000 charitable contribution carryover to 2010 from a prior year. Identify the tax issues the board should consider regarding the proposed contribution.

  Advise the Capital Gain Tax Consequences

Advise the Capital Gain Tax Consequences for the above transactions, please have a look at the matrix below on how to answer the question

  Which statements correctly applies to an unseasoned mortgage

Which statements correctly applies to an unseasoned mortgage? The mortgage has an adjustable interest rate that has not been adjusted to date.

  Create journal entries for the capital projects fund

Create journal entries for the capital projects fund and the general fund. A capital projects fund records a liability for $50,000 a reimbursement

  Describe the type of cost accumulation system that was used

Identify and describe the type of cost accumulation system that was used.

  How do economic factors impact financial decision

How do economic factors, including inflation, interest rates, and economic cycles impact your financial decisions and financial goals?

  What is the breakeven point for company

What is the breakeven point for this company? How much would we expect in profit for every unit sold above breakeven? What if the company has its budget set at $35,000 target profit? How many units must it sell?

  What amount of capital should be reported

Windburn began a service proprietorship, In September 30, 2020 financial statement, what amount of capital should be reported under the cash basis accounting?

  Assume that the entry to record amortization of the bond

Prepare the entry(ies) to record the conversion on April 1, 2011. (The book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.

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