On 1 June 2021, Willis Ltd sold inventory on credit to its fully owned subsidiary Lewis Ltd for $114 000. The inventory had cost Willis Ltd $90 000. By 30 June 2021, 40% of this inventory remained unsold by Lewis Ltd and Lewis Ltd had paid Willis Ltd 50% of the amount owed. The tax rate is 30%. Required: Prepare the adjusting entries for the consolidation worksheet at 30 June 2021. Show all calculations in narration. NB: Marks will be deducted where calculations are not shown.

Answer rating: 100% (QA)

Intercompany Sales Willis Ltd sold inventory to Lewis Ltd for 114000 This is an intercompany transac... View the full answer