Poh Ltd owns all the share capital of Soh Ltd. The income tax rate is 30%....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Poh Ltd owns all the share capital of Soh Ltd. The income tax rate is 30%. During the period ended 30 June 2023, the following transactions took place: a) Soh Ltd sold inventories costing $65 000 to Poh Ltd. Soh Ltd recorded a $15 000 profit before tax on these transactions. At 30 June 2023, Poh Ltd has none of these goods still on hand. b) Poh Ltd sold inventories costing $20 000 to Soh Ltd for $45 000. By 30 June 2023, two-fifths of these were sold to Wan Ltd for $24 250 and two-fifths to Lan Ltd for $23 500; the rest are still on hand with Soh Ltd. Wan Ltd and Lan Ltd are external entities. c) On 1 January 2023, Poh Ltd sold land for cash to Soh Ltd at $20 000 above cost. The land is still on hand with Soh Ltd. d) Soh Ltd sold a warehouse to Poh Ltd for $100 000 on 1 July 2022. The carrying amount of this warehouse recognised by Soh Ltd at the time of sale was $80 00. Poh Ltd charges depreciation at a rate of 3% p.a. on cost. Required In relation to the above intragroup transactions: 1. Prepare adjusting journal entries for the consolidation worksheet at 30 June 2023. (9 marks) 2. Explain briefly why adjusting journal entries are necessary for a), b), c) and d) mentioned above. Poh Ltd owns all the share capital of Soh Ltd. The income tax rate is 30%. During the period ended 30 June 2023, the following transactions took place: a) Soh Ltd sold inventories costing $65 000 to Poh Ltd. Soh Ltd recorded a $15 000 profit before tax on these transactions. At 30 June 2023, Poh Ltd has none of these goods still on hand. b) Poh Ltd sold inventories costing $20 000 to Soh Ltd for $45 000. By 30 June 2023, two-fifths of these were sold to Wan Ltd for $24 250 and two-fifths to Lan Ltd for $23 500; the rest are still on hand with Soh Ltd. Wan Ltd and Lan Ltd are external entities. c) On 1 January 2023, Poh Ltd sold land for cash to Soh Ltd at $20 000 above cost. The land is still on hand with Soh Ltd. d) Soh Ltd sold a warehouse to Poh Ltd for $100 000 on 1 July 2022. The carrying amount of this warehouse recognised by Soh Ltd at the time of sale was $80 00. Poh Ltd charges depreciation at a rate of 3% p.a. on cost. Required In relation to the above intragroup transactions: 1. Prepare adjusting journal entries for the consolidation worksheet at 30 June 2023. (9 marks) 2. Explain briefly why adjusting journal entries are necessary for a), b), c) and d) mentioned above.
Expert Answer:
Answer rating: 100% (QA)
Adjusting entries Sno Particulars Debit Credit A Cost of ... View the full answer
Related Book For
Basic Finance An Introduction to Financial Institutions, Investments and Management
ISBN: 978-1285425795
11th Edition
Authors: Herbert B. Mayo
Posted Date:
Students also viewed these accounting questions
-
Henk Ltd owns all the share capital of Hilboro Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2019 or 30 June 2020. (a) On 1 May 2019, Hilboro...
-
Sam Ltd owns all the share capital of Ruth Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2021 or 30 June 2022. Ruth Ltd manufactures items of...
-
Rita Ltd owns all the share capital of Pidani Ltd. The income tax rate is 30%. i) On 1 January 2020, Rita Ltd provided a loan of $9 000 to Pidani Ltd. The loan remains outstanding as at year end. ii)...
-
Air at room temperature has a density of about 1.29 kg/m 3 . Assuming it to be entirely one gas, find rms for its molecules.
-
The Moran Company is a discount tire dealer that operates 25 retail stores in a metropolitan area. Both private- brand and name- brand tires are sold. The company operates a centralized purchasing...
-
Kenaf is currently being investigated as a possible new source of useful fibers. Describe the properties of kenaf that make it seem favorable.
-
The file colleges contains the following data for the sample of 102 private colleges: year founded, tuition and fees (not including room and board), and the percentage of undergraduates who obtained...
-
Van Rushing Hunting Goods' fiscal year ends on December 31. At the end of the 2011 fiscal year, the company had notes payable of $12 million due on February 8, 2012. Rushing sold 2 million shares of...
-
A loan has a stated annual rate of 19.71%. If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest? You invest $3,679.00 at the beginning...
-
For each scenario below, identify which sampling method was used. Explain your reasoning. a) A dean decided to assess students' views on the school cafeteria's food. To do so, the dean randomly...
-
a) What is roster notation for the set of all natural numbers greater than 2 and less than or equal to 10? b) What is the set notation for the set of all natural numbers greater than 3 and less than...
-
What is the relevance of Houses pathgoal theory to managers?
-
Compare and contrast the five bases of power.
-
What is sexual harassment and what can organizations do to prevent it?
-
What can managers do to resolve conflict?
-
Discuss the pros and cons of forming an organizational task force with members who have very similar attitudes and personalities versus forming one with members who have very different attitudes and...
-
onjanuary 1, 2022 an investor conpany purchased a 30% interest in aninvestee company. the investor concluded that it could exertsignificant influence over the investee and would account for thatin 1...
-
If the annual fixed costs are 54,000 dinars, the occupation expense represents 20%, the contribution margin is 25%, and the unit selling price is 40 dinars. Required: Calculate the closing point of...
-
Identify the advantages associated with stock index options.
-
Explain the roles of financial, currency, and stock index futures.
-
You expect the stock market to increase, but instead of acquiring stock, you decide to acquire a stock index futures contract. That index is currently 58.8, and the contract has a value that is $500...
-
What are the main types of investors that fund entrepreneurial ventures?
-
What steps are needed to show that entrepreneurial finance is beneficial to the economy at large?
-
What are the main challenges that entrepreneurs and investors face at the four steps of the funding cycle, as described in the FIRE framework?
Study smarter with the SolutionInn App