Advanced Financial Accounting
Advanced Financial Accounting
11th Edition
ISBN: 9780078025877
Author: Theodore E. Christensen, David M Cottrell, Cassy JH Budd Advanced Financial Accounting
Publisher: McGraw-Hill Education
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Chapter 7, Problem 7.10E

1.

To determine

Introduction:Intra group transactions- those transaction which occurs between companies within a group are known as intra group transactions. These do not form as a part of the consolidated statements as the parent company and other companies’ net profit is not inappropriately increased.

To prepare: Insta group transactions to record sale of equipment.

2.

To determine

Introduction: Intra group transactions- those transaction which occurs between companies within a group are known as intra group transactions. These do not form as a part of the consolidated statements as the parent company and other companies’ net profit is not inappropriately increased.

To prepare: Journal entry for purchase of equipment and year end depreciation expense.

3.

To determine

Introduction: An elimination entry should be made to remove the effects of intercompany sale of the asset to be recorded in the consolidated financial statement.

To prepare: Elimination entry for intercompany sale of equipment as on 31st Dec 20X7.

4.

To determine

Introduction: An elimination entry should be made to remove the effects of intercompany sale of the asset to be recorded in the consolidated financial statement.

To prepare: Elimination entry for intercompany sale of equipment as on 1st Jan 20X7.

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