2) The following intercompany transactions occurred during the year:

(1.5 Marks)

• Parent loaned $12500 to Sub. To keep things simple, assume that there is no interest revenue or interest expense associated with this loan.
• Parent made a sale to Sub for $13000 cash. The inventory had originally cost Parent $12220. Sub then sold that same inventory to an outsider for $14000.
• Parent made a sale to Sub for $15000 cash. The inventory had originally cost Parent $11280. Sub has not yet sold that same inventory to an outsider. (Dont forget equity method entry!)

Based on our conceptual discussion, what consolidation worksheet entries would you make?

Plagiarism IS NOT ALLOWED, USE YOUR WORDS DONT COPY AND PASTE. *(Pleas make it as a text not handwriting) if there any reference add it