On 1 June 2021, Willis Ltd sold inventory on credit to its fully owned subsidiary Lewis Ltd
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On 1 June 2021, Willis Ltd sold inventory on credit to its fully owned subsidiary Lewis Ltd for $114 000. The inventory had cost Willis Ltd $90 000. By 30 June 2021, 40% of this inventory remained unsold by Lewis Ltd and Lewis Ltd had paid Willis Ltd 50% of the amount owed. The tax rate is 30%. Required: Prepare the adjusting entries for the consolidation worksheet at 30 June 2021. Show all calculations in narration. NB: Marks will be deducted where calculations are not shown.
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
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