question archive Ying Ltd owns all of the shares of Yang Ltd
Ying Ltd owns all of the shares of Yang Ltd
Subject:AccountingPrice: Bought3
Ying Ltd owns all of the shares of Yang Ltd. In relation to the following
intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2020. Assume an income tax rate of 30%.
Part A
On 1 May 2020, Ying Ltd sold merchandise for $330?000 to Yang Ltd. Ying Ltd recorded $30 000 profit before tax. At 30 June 2020, Yang Ltd sold 70% of this merchandise to external parties. (2 marks)
