Intra-Group Transactions - 15 Marks On the 1 July 20x7, P Ltd acquired all the shares of S Ltd. Assume each transaction is independent unless specified. The tax rate is 30% For each of the following four Parts (a) to (d), prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 20x9. Show all calculations. Part (a) Intra-Group Transactions - 3 Marks In May 20x9, S Ltd sells inventory to P Ltd for $14 000. This inventory had previously cost S Ltd $8 000, and it remains unsold by P Ltd at the end of the period. Part (b) Intra-Group Transactions - 3 Marks P Ltd, in January 20x9, sold inventory for $20 000. This inventory had been sold to it by S Ltd in the previous year. It had originally costs Ltd $15 000 and was sold to P Ltd for $18 000. Part (C) Intra-Group Transactions - 3 Marks In April 20x9, P Ltd sold inventory to S Ltd for $25 000, which had previously cost P Ltd $17 000. On the 25th of June 20x9, S Ltd sold $15,000 of the transferred inventory to external parties for $18,000 Part (d) Intra-Group Transactions - 6 Marks On 1 July 20x7, S Ltd sold an item of machinery with a cost of $60 000 and accumulated depreciation of $30 000 to P Ltd for $50 000. Ltd depreciates machinery at 20% and P Ltd at 10% p.a. a Intra-Group Transactions - 15 Marks On the 1 July 20x7, P Ltd acquired all the shares of S Ltd. Assume each transaction is independent unless specified. The tax rate is 30% For each of the following four Parts (a) to (d), prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 20x9. Show all calculations. Part (a) Intra-Group Transactions - 3 Marks In May 20x9, S Ltd sells inventory to P Ltd for $14 000. This inventory had previously cost S Ltd $8 000, and it remains unsold by P Ltd at the end of the period. Part (b) Intra-Group Transactions - 3 Marks P Ltd, in January 20x9, sold inventory for $20 000. This inventory had been sold to it by S Ltd in the previous year. It had originally costs Ltd $15 000 and was sold to P Ltd for $18 000. Part (C) Intra-Group Transactions - 3 Marks In April 20x9, P Ltd sold inventory to S Ltd for $25 000, which had previously cost P Ltd $17 000. On the 25th of June 20x9, S Ltd sold $15,000 of the transferred inventory to external parties for $18,000 Part (d) Intra-Group Transactions - 6 Marks On 1 July 20x7, S Ltd sold an item of machinery with a cost of $60 000 and accumulated depreciation of $30 000 to P Ltd for $50 000. Ltd depreciates machinery at 20% and P Ltd at 10% p.a. a
