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
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 |
- Using the revenue test, determine which of the operating segments are reportable segments? (0.5 mark)
- Using the operating profit test, determine which of the operating segments are reportable segments? (0.5 mark)
- Using the asset test, determine which of the operating segments are reportable segments? (0.5 mark)
- 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started