Good Limited provided a loan of $1,300,000 to its subsidiary Catch Limited. On consolidation, which of the following adjustments is needed in relation to this intragroup loan? DR Loan payable to parent $1,300,000 CR Cash $1,300,000 No adjustment needed. DR Loan receivable from subsidiaries $1,300,000 CR Loan payable to parent $1,300,000 DR Loan payable from parent $1,300,000 CR Loan receivable from subsidiaries $1,300,000

Loan transaction occurring between entities that are related to each other either as mergers,…

Answered: Good Limited provided a loan of…

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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Good Limited provided a loan of $1,300,000 to its subsidiary Catch Limited. On consolidation, which of the following adjustments is needed in relation to this intragroup loan?

		DR Loan payable to parent $1,300,000 CR Cash $1,300,000
		No adjustment needed.
		DR Loan receivable from subsidiaries $1,300,000 CR Loan payable to parent $1,300,000
		DR Loan payable from parent $1,300,000 CR Loan receivable from subsidiaries $1,300,000

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