The issued ordinary shares and gained control

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Reference no: EM131290026

On 1 July 2011, A Ltd acquired all the issued ordinary shares and gained control of Z Ltd.

Prepare the consolidation worksheet entries at 30 June 2016.

1) On 4May 2016, Z Ltd acquired $19,000 inventory from A Ltd. This inventory originally cost A Ltd $13,000. The profit in inventory at hand at 30 June 2016 was $2,000.

2) During the year ending 30 June 2016, Z Ltd sold inventory costing $24,000 to A Ltd for $36,000. One quarter of this was sold to external parties for $13,500.

Reference no: EM131290026

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