Three questions please I need help

1. Mickey Mouse Ltd owns 85% of Donald Duck Ltd. During 2018 Mickey Mouse Ltd sells inventory for $750,000 to Donald Duck Ltd at a mark-up of 25% above cost. At the end of the financial year 50% of the inventory was unsold. What is the work paper journal entry to eliminate the effects of the intercompany sale? (1 mark)

Description	Debit	Credit

2. Goldilocks Ltd has six (6) operating segments: Paper, Machinery, Concrete, Timber, Steel, Paint, and no inter-segment sales. The following information is provided about these six segments.

Segment	Operating Profit or Loss	Non-Affiliate Sales	Identifiable Assets
Paper	(1,600)	6,400	19,400
Machinery	(2,400)	5,600	7,200
Concrete	44,000	24,000	36,000
Timber	2,200	4,000	12,000
Steel	24,000	8,000	82,000
Paint	1,800	18,000	18,000

1. Using the revenue test, determine which of the operating segments are reportable segments? (0.5 mark)

2. Using the operating profit test, determine which of the operating segments are reportable segments? (0.5 mark)

3. Using the asset test, determine which of the operating segments are reportable segments? (0.5 mark)

4. Using your answers from 1-3 and using the 75% combined revenue test determine the number of reportable segments. (0.5 marks)

3. On November 10, 2017 Goofy Ltd buys some inventory from a French supplier to be paid for in Euros () two months later on January 10, 2018. Payment was to be for 125,000. The spot rates for the 1 are as follows:

November 10, 2017, transaction date, spot rate was $1.07/ 1

December 31, 2017 balance date, spot rate was $1.09/1

January 10, 2018, settlement date, spot rate was $1.05/1.

If Goofy Ltd does not hedge the transaction, please demonstrate what journal entries Goofy Ltd would have to prepare on the transaction date, balance date and settlement date? (3 marks)

Journal

Date	Description	Debit	Credit