Question 11 (15 marks) 1 a) on 1 February 2020. Munchies Lid was registered and oftered 50.000 dinara 5450 on applications 51 50 on finala By 15 March, applications had been received for 60.000 dinary shares At a directors meeting on 2 April, the company decided to issue 50.000 shares and lots proportion company's constitution all surplus money from application was refunded to the shareholders on these date The final call was made on 7 May with money due ty 30 My.All money was received on to the best meet the final call. On 10 June, as provided for in the constitution, the director decided to forten the shoes. They $6 for $5 in cash. Further issue cost is $6.000 paid in cash on 18 vane. The balance of the icetected are customer on 25 June Required: Prepare the journal entries to record the transactions of Munchies Ltd since the call was made on 7 May show will workloje but surat not required). (Total 10 marks) 1b1) Larry Lid bought 100% of issued shares in Jovy Ltd on 1 July 2018. The following transactions occurred between Lory and are they ended 30 June 2020: During the year-ending 30 June 2020. Joey sold inventory to Larry for $80,000. This inventory tad cost e 514000, byeendeng June 2020, Larry had sold one-third of the inventory to Leggo Ltd for $12,000 and the remaining two-thirds of the inventory was held by Lary Assume the corporate tax rate is 30% Required: For the purposes of the consolidated financial statements you need to prepare the adjustment journals for the above intra-group transactions (2.5 marks) between the two entities for the year ending 30 June 2020. 2 1 bit) Explain why intragroup transaction require elimination. (2.5 marks) Question 11 (15 marks) 1 a) on 1 February 2020. Munchies Lid was registered and oftered 50.000 dinara 5450 on applications 51 50 on finala By 15 March, applications had been received for 60.000 dinary shares At a directors meeting on 2 April, the company decided to issue 50.000 shares and lots proportion company's constitution all surplus money from application was refunded to the shareholders on these date The final call was made on 7 May with money due ty 30 My.All money was received on to the best meet the final call. On 10 June, as provided for in the constitution, the director decided to forten the shoes. They $6 for $5 in cash. Further issue cost is $6.000 paid in cash on 18 vane. The balance of the icetected are customer on 25 June Required: Prepare the journal entries to record the transactions of Munchies Ltd since the call was made on 7 May show will workloje but surat not required). (Total 10 marks) 1b1) Larry Lid bought 100% of issued shares in Jovy Ltd on 1 July 2018. The following transactions occurred between Lory and are they ended 30 June 2020: During the year-ending 30 June 2020. Joey sold inventory to Larry for $80,000. This inventory tad cost e 514000, byeendeng June 2020, Larry had sold one-third of the inventory to Leggo Ltd for $12,000 and the remaining two-thirds of the inventory was held by Lary Assume the corporate tax rate is 30% Required: For the purposes of the consolidated financial statements you need to prepare the adjustment journals for the above intra-group transactions (2.5 marks) between the two entities for the year ending 30 June 2020. 2 1 bit) Explain why intragroup transaction require elimination. (2.5 marks)
