Corporate Accounting

AutoSave OFF w- TACC605 T5 2020 - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Table Design Layout Tell me Share Comments Calibri 11 A A Aa Ap AaBbCcDdEe AaBbCcDdEE AaBbCcDdEE AaBbCcDdEE IUvab X2 X ADVAv Heading 2 Normal Normal_Time... Style1 Styles Dictate Sensitivity Paste B Pane Question 6 (10 marks) Riddler Lid owns all the shares of Penguin Ltd. Prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2020. Treat all parts of the ollowing intragroup transactions as independent unless specified otherwise. You are to assume an income tax rate of 30%. (a) On 30 June 2020, Riddle 020, Riddler Lid sold a motor vehicle to Penguin Ltd for $48 000. This had a carrying amount to Riddler Lid of $38 400. Both entities depreciate motor vehicles at a rate of 10% p.a. on cost. (3 marks) (b) On 1 May 2020, Penguin Lid sold inventory costing $2 400 to Riddler Ltd for $2 880 on credit. On 30 June 2020, only half of these goods had been sold by Riddler Ltd. Riddler Ltd paid $2 240 owed to Penguin Ltd. (7 marks) Solution: (a) ( b ) 13 of 16 + 1667 words X English (United States) Focus 95%