Question
Honey Ltd owns all of the shares of Bee Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified,
Honey Ltd owns all of the shares of Bee Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2020. Assume an income tax rate of 30%.
Part A
On 1 April 2020, Honey Ltd sold merchandise costing $50000 to Bee Ltd for $78000. 60% of this merchandise was sold to external entities for $88000 before 30 June 2020.
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
15th edition
1259994975, 125999497X, 1259631117, 978-1259631115
