1. Parent Ltd(P) and Sub Ltd(S) are a consolidated group for financial accounting purpose. Ignore GST in this question. Both companies use the perpetual inventory system.

On the first day of the current year P bought $10,000 worth of inventory on credit. A few months later it sold $1000 of this inventory to S for $3000 on credit.

By the end of the current year, S had sold 90% of this inventory to an outsider for $2100.

Select the correct journal entry for the consolidation worksheet at the end of the current year. By the end of the year, S still had not paid the amount owned to P.

2. Parent Ltd(P) and Sub Ltd(S) are a consolidated group for financial accounting purpose. Ignore GST in this question. Both companies use the perpetual inventory system.

On the first day of the previous year P bought $10,000 worth of inventory on credit. A few months later it sold $1000 of this inventory to S for $3000 on credit.

By the end of the current year, S had sold 90% of this inventory to an outsider for $2100.

Select the correct journal entry for the consolidation worksheet at the end of the current year. By the end of the year, S had sold all of the inventory it had purchased from P. and paid off its debt.

3. Parent Ltd(P) and Sub Ltd(S) are a consolidated group for financial accounting purpose. Ignore GST in this question. Both companies use the perpetual inventory system.

On the first day of the current year P bought $10,000 worth of inventory on credit. A few months later it sold $1000 of this inventory to S for $300 on credit.

By the end of the current year, S had sold 90% of this inventory to an outsider for $2100.

Select the correct journal entry for the consolidation worksheet at the end of the current year. By the end of the year, S still had not paid the amount owned to P.

4. On 1 July 2018, Xavier Ltd rents a warehouse for one year its subsidiary. Gabrielle Ltd, for $60000. The company tax rate is 30%. The consolidation adjustment entry needed at 30 June 2020 is: