S Ltd acquired 70% of the ordinary shares of Y Ltd. On I July 2020 S...
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S Ltd acquired 70% of the ordinary shares of Y Ltd. On I July 2020 S Ltd began supplying Y Ltd with goods. S Ltd hopes to achieve a gross profit percentage margin of 35% on each sale completed. The Inventory sales from S Ltd to Y Ltd is R1 775 000 for year ended 30 June 2021 and R2 250 000 for the year ended 30 June 2022. Inventory on hand amounted to R650 000 for the year ended 30 June 2021 and R750 000 for the year ended 30 June 2022. REQUIRED: Prepare the journal entries for the year ended 30 June 2022 (Assume a tax rate of 28%) Note: Journal narrations must be included. S Ltd acquired 70% of the ordinary shares of Y Ltd. On I July 2020 S Ltd began supplying Y Ltd with goods. S Ltd hopes to achieve a gross profit percentage margin of 35% on each sale completed. The Inventory sales from S Ltd to Y Ltd is R1 775 000 for year ended 30 June 2021 and R2 250 000 for the year ended 30 June 2022. Inventory on hand amounted to R650 000 for the year ended 30 June 2021 and R750 000 for the year ended 30 June 2022. REQUIRED: Prepare the journal entries for the year ended 30 June 2022 (Assume a tax rate of 28%) Note: Journal narrations must be included.
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Answer rating: 100% (QA)
Recording Sales to Y Ltd The sales to Y Ltd for the year ended 30 June 2022 were R2250000 Recording Cost of Goods Sold COGS COGS Sales Revenue 1 Gross ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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