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osh Ltd sold inventory to Edie Ltd for $: during the previou

osh Ltd sold inventory to Edie Ltd for $: during the previou

FINANCIAL ACCOUNTING
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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PLEASE SOLVE PART E

QUESTION 4 Part (E) Josh Ltd sold inventory to Edie Ltd for $50,000 during the previous financial year on 2 February 2021. The original cost of the inventory to Josh Ltd was $30,000. All of the inventory remained on hand on 30 June 2021. Three quarters (75%) of the inventory was sold to an external party during the year ended 30 June 2022, and the remaining one quarter (25%) of the inventory was still on hand by the end of the year.
Transcribed Image Text:QUESTION 4 Part (E) Josh Ltd sold inventory to Edie Ltd for $50,000 during the previous financial year on 2 February 2021. The original cost of the inventory to Josh Ltd was $30,000. All of the inventory remained on hand on 30 June 2021. Three quarters (75%) of the inventory was sold to an external party during the year ended 30 June 2022, and the remaining one quarter (25%) of the inventory was still on hand by the end of the year.
0 QUESTION 4: This question consists of 6 parts (Parts A, B, C, D, E, and F). All parts must be attempted. The following transactions occurred between Edie Ltd and its wholly owned subsidiary, Josh Ltd. All transactions occurred during the year ended 30 June 2022 unless specifically stated otherwise. The company tax rate is 30%. Required: Prepare the adjustment entries required to eliminate the intra-group transactions in the consolidation worksheet of Edie Ltd Group on 30 June 2022. Details of the transactions are provided below in Parts A-F. Provide the journal entries in the text box below the description of each transaction. There is no worksheet provided in this question and therefore you are not required to post the entries to a worksheet. When making adjustments to the relevant accounts, you can assume that each account that you need to adjust exists in the worksheet. Show all calculations. Formatting requirements: In all journal entries, you must specify whether the entry is a debit or credit entry by including "Dr" or "Cr" before the account name. Credit entries must also be indented. Journal entries which do not follow these requirements will be awarded a mark of zero. Below are examples of correctly formatted journal entries: Dr Cash 1000 Cr Cash 1000
Transcribed Image Text:0 QUESTION 4: This question consists of 6 parts (Parts A, B, C, D, E, and F). All parts must be attempted. The following transactions occurred between Edie Ltd and its wholly owned subsidiary, Josh Ltd. All transactions occurred during the year ended 30 June 2022 unless specifically stated otherwise. The company tax rate is 30%. Required: Prepare the adjustment entries required to eliminate the intra-group transactions in the consolidation worksheet of Edie Ltd Group on 30 June 2022. Details of the transactions are provided below in Parts A-F. Provide the journal entries in the text box below the description of each transaction. There is no worksheet provided in this question and therefore you are not required to post the entries to a worksheet. When making adjustments to the relevant accounts, you can assume that each account that you need to adjust exists in the worksheet. Show all calculations. Formatting requirements: In all journal entries, you must specify whether the entry is a debit or credit entry by including "Dr" or "Cr" before the account name. Credit entries must also be indented. Journal entries which do not follow these requirements will be awarded a mark of zero. Below are examples of correctly formatted journal entries: Dr Cash 1000 Cr Cash 1000
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