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Sohar Company, the 80%-owned subsidiary of Muscat Corporation, sells merchandise to Muscat at a gross margin rate of 25%. Intercompany sales during the fiscal year
Sohar Company, the 80%-owned subsidiary of Muscat Corporation, sells merchandise to Muscat at a gross margin rate of 25%. Intercompany sales during the fiscal year ended June 30, 2019, were OMR100,000. Muscat ending inventory of merchandise obtained from Sohar was OMR60,000 at billed prices, an amount OMR20,000 larger than the beginning inventory. The June 30, 2019, working paper elimination (in journal entry format) for Muscat Corporation and subsidiary includes a: Select one: a. Credit of OMR10,000 to Inventories-Muscat Ob. Debit of OMR2,000 to Minority Interest in Net Assets of Subsidiary c. None of the answers are correct Od. Debit of OMR25,000 to Gross Margin on Sales-Stubbs Oe. Debit of OMR80,000 to Sales-Sohar
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