In May 2017, o parent sold inventories to a subsiaiary entity for $50 000. The inventories had previously cost theparent entity $48 000. The entire inventory is still neld by the subsiaiary at reporting date, 30 June 2017. Ignoringtax effects, which of the following is the adjustment entry in the consolidation worksheet at reporting aate?Select one:a.Cost of salesDr60 000Sales revenueCr12 000InventoriesCr48 000b.Sales revenueDr48 000CashCr48 000InventoriesDr48 000Cost of salesCr48 000C.CashDr48 000Sales revenueCr48 000Cost of salesDr48 000InventoriesCr48 000d.Sales revenueDr60 000Cost of salesCr48 000InventoriesCr12 000

When a company takes over the shares of another company, it would be considered as consolidation.…

In May 2017, o parent sola inventories to a subsiaiary entity for $60 000. The inventories nao previoUsty cost the parent entity $43 000. Tne entire inventory is still held by the subsiaiary at reporting ate, 30 June 2017. ignoring tax effects, wnich of the following is the oojustment entry in the consolidation worKsheet at reporting aate?

In May 2017, o parent sola inventories to a subsiaiary entity for $60 000. The inventories nao previoUsty cost the parent entity $43 000. Tne entire inventory is still held by the subsiaiary at reporting ate, 30 June 2017. ignoring tax effects, wnich of the following is the oojustment entry in the consolidation worKsheet at reporting aate?

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

In May 2017, o parent sold inventories to a subsiaiary entity for $50 000. The inventories had previously cost the
parent entity $48 000. The entire inventory is still neld by the subsiaiary at reporting date, 30 June 2017. Ignoring
tax effects, which of the following is the adjustment entry in the consolidation worksheet at reporting aate?
Select one:
a.
Cost of sales
Dr
60 000
Sales revenue
Cr
12 000
Inventories
Cr
48 000
b.
Sales revenue
Dr
48 000
Cash
Cr
48 000
Inventories
Dr
48 000
Cost of sales
Cr
48 000
C.
Cash
Dr
48 000
Sales revenue
Cr
48 000
Cost of sales
Dr
48 000
Inventories
Cr
48 000
d.
Sales revenue
Dr
60 000
Cost of sales
Cr
48 000
Inventories
Cr
12 000

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