question archive Ying Ltd owns all of the shares of Yang Ltd
Ying Ltd owns all of the shares of Yang Ltd
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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 D
On 1 February 2020, Ying Ltd acquired $80?000 of debentures previously issued by Yang Ltd. These were acquired on the open market for $80 000. The Half-yearly Interest of $4,250 on debentures was paid on 30 June 2020. (3 Marks)
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Part D.
Bonds Payable - 80,000
Interest Income - 4,250
Investment in Bonds - 80,000
Interest Expense - 4,250
( It has to be reverted , the intercompany bonds . Transactions recorded in the consolidated FS shall be coming from external transactions , transactions with third parties. Related interests shall be removed as well. )
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