In May 2017, o parent sold inventories to a subsiaiary entity for $50 000. The inventories had previously cost theparent entity $48 000. The entire inventory is still neld by the subsiaiary at reporting date, 30 June 2017. Ignoringtax effects, which of the following is the adjustment entry in the consolidation worksheet at reporting aate?Select one:a.Cost of salesDr60 000Sales revenueCr12 000InventoriesCr48 000b.Sales revenueDr48 000CashCr48 000InventoriesDr48 000Cost of salesCr48 000C.CashDr48 000Sales revenueCr48 000Cost of salesDr48 000InventoriesCr48 000d.Sales revenueDr60 000Cost of salesCr48 000InventoriesCr12 000

When a company takes over the shares of another company, it would be considered as consolidation.…

In May 2017, o parent sola inventories to a subsiaiary entity for $60 000. The inventories nao previoUsty cost the parent entity $43 000. Tne entire inventory is still held by the subsiaiary at reporting ate, 30 June 2017. ignoring tax effects, wnich of the following is the oojustment entry in the consolidation worKsheet at reporting aate?

In May 2017, o parent sola inventories to a subsiaiary entity for $60 000. The inventories nao previoUsty cost the parent entity $43 000. Tne entire inventory is still held by the subsiaiary at reporting ate, 30 June 2017. ignoring tax effects, wnich of the following is the oojustment entry in the consolidation worKsheet at reporting aate?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 3MC

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In May 2020, a parent sold inventories to a subsidiary entity for $60 000. The inventories had previously cost the parent entity $48 000. The entire inventory is still held by the subsidiary at reporting date, 30 June 2020. Ignoring tax effects, which of the following is the adjustment entry in the consolidation worksheet at reporting date? a. Cash Dr 48 000 Sales revenue Cr 48 000 Cost of sales Dr 48 000 Inventories Cr 48 000 b. Sales revenue Dr 48 000 Cash Cr 48 000 Inventories Dr 48 000 Cost of sales Cr 48 000 c. Cost of sales Dr 60 000 Sales revenue Cr 12 000 Inventories Cr 48 000 d. Sales revenue Dr 60 000 Cost of sales Cr 48 000 Inventories Cr 12 000 Answer (write…
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