As January 3, 2020, Princess Corp. sold a machinery with a book value of P80,000 and a20-year remaining useful life to its wholly owned subsidiary, Sheena Corporation, forP120,000. Both Princess and Sheena use the straight-line depreciation method. OnDecember 31, 2020, the separate company financial statements contained the followingbalances related to the machinery:PrincessSheenaP40,000Gain on sale of machineryDepreciation expenseMachineryAccumulated depreciationP6,000120,0006,000A working paper entry to consolidate the financial statements on December 31, 2020 willinclude:a. A debit to gain on sale of warehouse for P38,000,b. A debit to gain on sale of warehouse for P6,000.c. A debit to accumulated depreciation for P2,000.d. A credit to depreciation expense for P6,000

This comes under Residual Issues in Consolidating Financial Statement: Treatment of Unrealised…

As January 3, 2020, Princess Corp. sold a machinery with a book va 20-year remaining useful life to its wholly owned subsidiary, She P120,000. Both Princess and Sheena use the straight-line depre December 31, 2020, the separate company financial statements con balances related to the machinery: Princess P40,000 Gain on sale of machinery Depreciation expense Machinery Accumulated depreciation A working paper entry to consolidate the financial statements on De include: 1 A debit to gain on sale of warehouse for P38,000,

As January 3, 2020, Princess Corp. sold a machinery with a book va 20-year remaining useful life to its wholly owned subsidiary, She P120,000. Both Princess and Sheena use the straight-line depre December 31, 2020, the separate company financial statements con balances related to the machinery: Princess P40,000 Gain on sale of machinery Depreciation expense Machinery Accumulated depreciation A working paper entry to consolidate the financial statements on De include: 1 A debit to gain on sale of warehouse for P38,000,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: accounting
Sea Ltd (the parent) sold an item of plant to Bill Ltd (the subsidiary) for $12,000 on 31/12/2021. The total carrying amount was $8,000 with a remaining useful life of 6 years. 1) Prepare the consolidation journal entries for this item at its transaction date.
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