The Parent advances 100000 to Subsidiary on 1 July 2005 for a term of 5 years

The parent advances 100000 to subsidiary on 1 july

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6)The Parentadvances $100,000 to Subsidiaryon 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
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Page 3 of 12 7)The Subsidiarydeclares and pays a dividend of $30,000 to the Parenton 1 February 2009 from its post-acquisition profits. The consolidation worksheet entries for 30/6/09 include: 8)The Subsidiarydeclares a dividend of $35,000 to the Parenton 1 June 2009 from its post-acquisition profits and the dividend is unpaid at year end. The consolidation worksheet entries for 30/6/09 include: 9)The Subsidiarymakes a sale of inventory to the Parentfor $400,000 during the year to 30 June 2009. The original cost of the inventory to the Subsidiary is $300,000. None of the inventory is on hand with the Parent at year end. The consolidation worksheet entries for 30/6/09 include:
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Page 4 of 12 10)The Subsidiarymakes a sale of inventory to the Parent for $400,000 during the year to 30 June 2009. The original cost of the inventory to the Subsidiary is $300,000. There is 80% of this inventory on hand with the Parent at year end. The consolidation worksheet entries for 30/6/09 include: a)Dr. Sales $400,000 Cr. Cost of sales $300,000 Cr. Inventory $100,000 b)Dr. Sales $400,000 Cr. Cost of sales $320,000 Cr. Inventory $ 80,000 c)Dr. Sales $400,000 Cr. Cost of sales $400,000 d)Dr. Sales and Inventory $ 80,000 e)No entries for this are required for 30/6/09
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