-3 - of QUESTION 3 (9 MARKS) Normanhurst Ltd is a wholly owned subsidiary of Beecroft...

  

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-3 - of QUESTION 3 (9 MARKS) Normanhurst Ltd is a wholly owned subsidiary of Beecroft Ltd. The transactions for the period ending 30 June 2020 are shown below: Transactions 3 1 During the accounting period, Normanhurst Ltd paid management fees of $26 000 to Beecroft Ltd. 2 Beecroft issues 2 000 debentures with face value of $80, 10% interest rate. Normanhurst purchased 500 of these debentures on 01/07/2017. 3 Beecroft Ltd sold inventory to Normanhurst Ltd for $80 000 during the period. This inventory had originally cost Beecroft Ltd $50 000. Normanhurst Ltd sold % of this inventory during the period to parties external to the group for $90 000. The remaining % is still held by Normanhurst Ltd at the end of the period. The tax rate is assumed to be 30%. Required prepare consolidation elimination entries for the period when transactions took place. A. BI CL E SS S -3 - of QUESTION 3 (9 MARKS) Normanhurst Ltd is a wholly owned subsidiary of Beecroft Ltd. The transactions for the period ending 30 June 2020 are shown below: Transactions 3 1 During the accounting period, Normanhurst Ltd paid management fees of $26 000 to Beecroft Ltd. 2 Beecroft issues 2 000 debentures with face value of $80, 10% interest rate. Normanhurst purchased 500 of these debentures on 01/07/2017. 3 Beecroft Ltd sold inventory to Normanhurst Ltd for $80 000 during the period. This inventory had originally cost Beecroft Ltd $50 000. Normanhurst Ltd sold % of this inventory during the period to parties external to the group for $90 000. The remaining % is still held by Normanhurst Ltd at the end of the period. The tax rate is assumed to be 30%. Required prepare consolidation elimination entries for the period when transactions took place. A. BI CL E SS S

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CONSOLIDATION JOURNAL ENTRY Particulars 1 Management feeincome M... View the full answer