What are the consolidation adjustment entries required to eliminate intragroup dividend transactions. Background info: 50% of the
Question:
What are the consolidation adjustment entries required to eliminate intragroup dividend transactions.
Background info:
50% of the service revenue generated by SUB is for maintenance services provided to PARENT.$13,000 of this had not been paid at the end of June
Subs Trial Balance
Cr Service Revenue $313,000 (so $156,000 is an intragroup transaction)
Dr Other Accounts Receivable $35,500
(Sub charges $156,000 to parent of the year $13,000 of which is paid and $143,000 still to be paid from Parent to Sub)
Parent Trial Balance
Dr Other Operating Expenses $225,000
Cr Other Payables $121,550
Question- What manual journal entry is required to Eliminate revenue generated by Sub for services provided to Parent and the amount owing at 30 June
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann