Intragroup Trans 2009 - Page 1 of 7 Consolidation 28) The...

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Unformatted text preview: Page 1 of 7 Consolidation 28) The Parent provided administration services to the Subsidiary during the year to 30 June 2009 amounting to $50,000. The Subsidiary has paid for these services by year end. The consolidation worksheet entries for 30/6/09 include: a) Dr. Cash $50,000 Cr. Administration expense $50,000 b) Dr. Service revenue $50,000 Cr. Cash $50,000 c) Dr. Service revenue $50,000 Cr. Administration expense $50,000 d) Dr. Administration expense $50,000 Cr. Service revenue $50,000 e) No entries for this are required for 30/6/09 29) The Parent provided management services to the Subsidiary amounting to $45,000 during the previous year to 30 June 2008. The subsidiary paid for these services on 1 July 2008. The consolidation worksheet entries for 30/6/09 include: a) Dr. Retained profits 1/7/08 $45,000 Cr. Administration expense $45,000 b) Dr. Management fee revenue $45,000 Cr. Intercompany Receivable $45,000 c) Dr. Intercompany Payable $50,000 Cr. Management fee expense $50,000 d) Dr. Retained profits 1/7/08 $45,000 Cr. Cash $45,000 e) No entries for this are required for 30/6/09 30) The Parent holds 90% of the shares of the Subsidiary . At 30 June 2009 the Subsidiary owes the Parent $40,000 for inventory purchases. The consolidation worksheet entries for 30/6/09 include: a) Dr. Intercompany payable $40,000 Cr. Intercompany receivable $40,000 b) Dr. Intercompany payable $36,000 Cr. Intercompany receivable $36,000 c) Dr. Cost of sales $40,000 Cr. Inventory $40,000 d) Dr. Cost of sales $36,000 Cr. Inventory $36,000 e) No entries for this are required for 30/6/09 Page 2 of 7 31) The Subsidiary has utilised the Parents bank overdraft account to pay employee wages of $80,000 during the year to 30 June 2009. The Subsidiary has not repaid this amount by year end. The consolidation worksheet entries for 30/6/09 include: a) Dr. Intercompany payable $80,000 Cr. Employee expenses $80,000 b) Dr. Intercompany payable $80,000 Cr. Intercompany receivable $80,000 c) Dr. Bank overdraft $80,000 Cr. Employee expenses $80,000 d) Dr. Cash at bank $80,000 Cr. Employee expenses $80,000 e) No entries for this are required for 30/6/09 32) The Parent advances $100,000 to Subsidiary on 1 July 2005 for a term of 5 years with interest paid at the end of each year at 8% p.a. The consolidation worksheet entries for 30/6/09 include: a) Dr. Advance from Parent $100,000 Cr. Advance to Subsidiary $100,000 Dr. Interest revenue $ 8,000 Cr. Interest expense $ 8,000 b) Dr. Interest revenue $ 32,000 Cr. Interest expense $ 32,000 c) Dr. Retained profits 1/7/08 $ 32,000 Cr. Interest expense $ 32,000 d) Dr. Advance to Subsidiary $100,000 Cr. Advance from Parent $100,000 e) No entries for this are required for 30/6/09 33) The Subsidiary declares and pays a dividend of $30,000 to the Parent on 1 February 2009 from its post-acquisition profits. The consolidation worksheet entries for 30/6/09 include: a) Dr. Dividend revenue $30,000 Cr. Dividend payable $30,000 b) Dr. Dividend revenue...
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This note was uploaded on 12/06/2011 for the course ACCT 2542 taught by Professor Knapp during the One '11 term at University of New South Wales.

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Intragroup Trans 2009 - Page 1 of 7 Consolidation 28) The...

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