User Account

All Pages

Provide consolidation adjustment entries for transactions

Assignment Help Financial Accounting
Reference no: EM132910579

Question - Surf Ltd is the wholly owned subsidiary of Boat Ltd. The following transactions occur between the two entities during the financial year ending 30 June 2021:

On 1 July 2020 Boat Ltd sells an item of non-current asset to Surf Ltd for $470,000. This asset cost Boat Ltd $560,000 and had accumulated depreciation of $180,000 at the date of the sale. The remaining useful life of the asset is assessed as 10 years.

Boat Ltd contracted Surf Ltd to provide management consultancy services worth $160,000 during the year. Twenty five percent (25% of the total contract price remains unpaid at 30 June 2021.

Required - Assuming a tax rate of 30%, provide consolidation adjustment entries for the above inter-entity transactions to enable preparation of the consolidated report for the year ending 30 June 2021.

Reference no: EM132910579

Questions Cloud

What factors limit the use of the fixed-asset turnover ratio : What factors limit the use of the fixed-asset turnover ratio in comparative analyses? What are the three most important determinants of a firm?
Successful sociologist makes familiar strange : Explain how a successful sociologist makes the familiar strange, and make sure to explain what this concept means.
The moon has synodic and sidereal period : The Moon has a synodic and a sidereal period. Define each term and describe which is longer and why.
How much would the npv change if discount rate increases : The discount rate that your firm uses for projects of this type is 12%. How much would the NPV change if discount rate increases to 14%?
Provide consolidation adjustment entries for transactions : Assuming a tax rate of 30%, provide consolidation adjustment entries for the above inter-entity transactions to enable preparation of the consolidated report
Earth path in space be in response to such event : What if the Sun suddenly disappeared? What would Earth's path in space be in response to such an event?
What was the equivalent at the end of the year : Measure the timeframe of income that are being reviewed and provide a timeframe. What was the equivalent at the end of the year?
What is the value of the objective function : What production schedule minimizes total cost while meeting product demand? What is the value of the objective function
Find what is modified internal rate of return of project : DYI Construction Co. is considering a new inventory system that will cost $750,000. What is the modified internal rate of return of this project?

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