Tanton plc is the parent company of Ruckus plc. Tanton sold its inventory to Ruckus for a price of £14,000. Tanton had held such inventory on its statement of financial position at a cost of £10,000. By the end of the financial year, Ruckus still held £2,800 of that inventory on its statement of financial position. How much unrealised profit should be cancelled on consolidation? a. Zero b. £400 c. £800 d. £2,800 e. £4,000
Q: Use the following information to compute the cost of direct materials used for the current year.…
A: Cost of Raw materials used = Opening Balance of Raw materials + Purchases of Raw materials - Closing…
Q: Catena's Marketing Company has the following adjusted trial balance at the end of the current year.…
A: Balance sheet refers to the financial statement which shows the assets, liabilities and…
Q: Data table I Plan A: Pay $0.09 per minute of long-distance calling. Plan B: Pay a fixed monthly fee…
A: Budgeting is a process of planning future income and expenses. This make us able to arrange money…
Q: Double Company produces three products - DBB-1, DBB-2, and DBB-3 from a joint process. Each product…
A: Lets understand the basics. Joint cost arise when more than one product gets produced from the…
Q: Question You work as a freelance accounting professional and have been recently engaged by the…
A: Cash flow shows the movement of cash spending and income of a company over a specific time. A…
Q: Teal Co.sells $365,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June…
A: Bond is debt securities which issued to raise fund on payment of interest expense. Buyback is a…
Q: Which of the following statements is FALSE? a) The Capital Asset Pricing Model is the most…
A: Answer:- Cost of capital:- The minimum rate of return or profit that a business must achieve before…
Q: Year Under Armour Performances NS Trend (Base Year: Previous Year) Net Sales 2009 $856,411,000.00…
A: NS trend refers to the trend of the net sales. Trend will entail percentage calculation of the…
Q: Sandhill Manufacturing Inc. has the following cost and production data for the month of April. Units…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating…
A: Operating cash flows are those cash flows which are generated from the business by operations in the…
Q: Splish Windows manufactures and sells custom storm windows for three-season porches. Splish also…
A: INTRODUCTION: Sales revenue and revenue are phrases that are sometimes used interchangeably.…
Q: Raphael and Martina are engaged and are planning to travel to Las Vegas during the 2022 Christmas…
A: Tax liability: The amount of tax, a taxpayer is liable to pay is called tax liability. It depends…
Q: Crankshaft Company manufactures equipment. Crankshaft's products range from simple automated…
A: INTRODUCTION: A service obligation is a contractual promise made by a provider to its clients to…
Q: On Jan 2, JKM Co buys a $40,000 piece of equipment paying $15,000 down and signing a 4 year note for…
A: Fixed Assets: The assets that last longer than a year is classified as fixed assets. The consumption…
Q: On January 1, 2016, Crane Company issued 2000 of its 10%, $1,000 bonds for $2080000. These bonds…
A: The issuer of debt instruments such as callable bonds has the right to pay back the principal value…
Q: You work as a freelance accounting professional and recently engaged by the auditors of…
A: The income statement is a type of statement that shows the relationship between different expenses…
Q: 10. Food for the restaurant costs €500 of which €300 has been paid and €200 is still owing. No food…
A: Double Entry System When referring to a process where the finances are kept in a book, we use the…
Q: Calculate the 2022 Return on Common Stockholder's Equity ratio.
A: Retrun on stockholders' equity represents the earnings of the company that is entitled to the…
Q: (Answers that are Multiples (x) or Percents (%) should be carried to 1 decimal place or 2 if…
A: Acquisition is when a company purchases most of shares of other company in exchange of…
Q: TASK SIX Merchandising. Pharma help, Inc., a distributor of special pharmaceutical products,…
A: Hi student Since there are multiple subparts asked, we will answer only first three subparts.…
Q: Bonita Company maintains a petty cash fund for small expenditures. These transactions occurred…
A: Petty cash is a small amount of cash that is kept on the company premises to pay for minor cash…
Q: Nolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book…
A: The book value method of recording bond conversion into common stock…
Q: Which of the following accounts would be classified as nominal account and have a normal balance of…
A: A nominal account is one of the accounts that gets closed at the end of the accounting period. These…
Q: Pixa stock is traded at RM6.72 each and the company had just paid a dividend of RM0.71, which has…
A: The rate of return on the stock represents the percentage measure of the earnings on the stock.
Q: Evaluate and detail the significant steps in setting a financial / cost controlling budget in a…
A: Budgeting: Budgeting is a tool used to plan the income and expenses of any business organization.…
Q: STARPLUS LIMITED: PLANNING FOR 2023 Starplus, Limited is well known for its focus on customer…
A: The statement of financial position also known as balance sheet shows the assets, liabilities and…
Q: Margaret, a married taxpayer filing a joint return, engaged in two business activities this year.…
A: Deductible business loss refers to the expenses which are directly incurred for carrying out the…
Q: z i The year-end adjusted trial balance of Aggies Corporation included the following account…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: s CON1-1 Part 2 2. Prepare a statement of stockholders' equity for the current year. PENNY'S POOL…
A: STATEMENT OF SHAREHOLDERS EQUITY Statement of Shareholders Equity is also Known as Changes in…
Q: M9-4 Computing Book Value (Straight-Line Depreciation) A machine that cost $400,000 has an estimated…
A: Book value = Original cost - Accumulated Depreciation Under the straight line depreciation method,…
Q: Compute cost of goods sold, assuming Blue uses: (Round average cost per unit to 4 decimal places,…
A: Under FIFO method the oldest products in inventory have been sold first. Under LIFO method the…
Q: (a) (b) What are the tax consequences to Adams, Block, Smith, Jones and Manufacturing Corp. under…
A: Tax Consequence in Ownership interest in Manufacturing Corp. The specifics of the ownership interest…
Q: Viva sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, and variable…
A: The contribution margin is calculated as excess of sales revenue over variable costs. The break even…
Q: Flora's Gifts reported the following current-month data for its only product. The company uses a…
A: Solution A: Computation of COGS and ending inventory - Specific identification Particulars Cost…
Q: How high is the annual surplus under commercial law at t1 and how high is the sustainable annual…
A: The annual surplus under commercial law at t1 is calculated as follows: Operating result +88 T€ +…
Q: Prepare the general journal entry to record the payment to Hazel Adams if she is paid an amount…
A: In the process of retirement of partner we need to revalue assets and liabilities. After revaluation…
Q: Calculate the market value of the firm's stockholders' equity
A: Market value of the firm's stockholders' equity refers to total market value of a company's equity.…
Q: Pharoah Company adopts acceptable accounting for its defined benefit pension plan on January 1,…
A: A defined benefit pension plan is provided by employers as a retirement pension plan for employees…
Q: Phillip Morris reported the following information in its 2018 Form 10-K. $ millions Stockholders'…
A: The return on equity is the profitability ratio that is calculated by dividing the net earnings…
Q: Contracting by Negotiation provides the Government flexibility with the use of the Best Value…
A: The Best Value Continuum is a concept used in the procurement of goods and services by government…
Q: Assets Cash Receivables (net) Inventory PP & E (net) Patents&Licenses Goodwill Total assets…
A: Accounting Ratios: Accounting ratios are the mathematical relation between two financial figures to…
Q: Research and describe the following accounts and explain how to use them with some transaction…
A: Adjustments entries are the journal entries made at the end of the accounting period to account for…
Q: Consider the following situations for Shocker: On November 28, 2024, Shocker receives a $4,200…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: List the accounts names for the following transaction and determine which is a debit or credit: 1.…
A: INTEREST ON NOTES PAYABLE ACCRUED IS A PART OF CURRENT LIABILITY AND EVERY LIABILITY EITHER CURRENT…
Q: When adjusting for the Office Supplies used at the end of the month, the ending balance in supplies…
A: Depreciation is a type of method applied to the value of fixed assets to reduce their value over a…
Q: 2. The listed App AG has issued shares with a nominal value of €1. In t5, a capital increase is…
A: A capital increase by a firm often entails the issuance of new shares to raise additional funds. In…
Q: K Posting a $2,500 purchase of office supplies on account appears as follows: O A. O B. O C. O D.…
A: Journal entries are used to record transactions in chronological order under double entry accounting…
Q: R. L. Ybarra employs John Ince at a salary of $53,000 a year. Ybarra is subject to employer Social…
A: Cost of employment includes all expenses paid by employer. Payroll taxes also part of employment…
Q: Splish Company's ledger shows the following balances on December 31, 2025. 7% Preferred stock-$10…
A: Dividends: The part of income that a company decides to distribute to their shareholders are termed…
Q: Mr. Vavalu, had the following income and expenses for the year Philippines P 2,000,000 Gross Sales…
A: As per Philippines tax laws, Optional Standard Deduction can only be claimed by an individual other…
Tanton plc is the parent company of Ruckus plc. Tanton sold its inventory to Ruckus for a price of £14,000. Tanton had held such inventory on its
How much unrealised profit should be cancelled on consolidation?
Zero
£400
£800
£2,800
£4,000
Step by step
Solved in 2 steps
- BBB,Inc sells its unprofitable division A at a gain of $20,000. Before the sale, division A had a net loss of $50,000 for the period. Which of the following is true? The$20,000. Before the sale, Division U had a net loss of $50,000 for the period. Which of the following is true O The $20,000 gain on sale will be disclosed in the notes to the financial statements only, with the 550 operations. The $50,000 net loss will be a part of continuing operations and the $20,000 gain on sale will be a part of discontinued operations. The $20,000 gain on sale will be a part of continuing operations and the $50,000 net loss wil be a part of discontinued operations. Both the net loss of $50,000 as well as the gain on sale of $20,000 will be included as a part of discontinued operations.PP Corp. owned 80% of KK Corp.'s common stock. During October 20x9, KK sold merchandise to PP for P140,000. At December 31, 20x9, 50% of this merchandise remained in Prince's inventory. For 20x9, gross profit percentages were 30% of sales for PP and 40% of sales for KK. The amount of unrealized intercompany profit in ending inventory at December 31, 20x9 that should be eliminated in the consolidation process isJessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for $8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows: Sales. Dr15 000Cost of Sales Cr 13 000 Inventory Cr 2 000 DeferredTaxAsset Dr 300 Income Tax ExpenseCr 300 Required: (i) Discuss whether the entries suggested by Li Chen are correct, explaining on a line-by-line basis the correct adjustment entry. (ii)Determine the consolidation worksheet entries in the following year, assuming the inventory has been –sold, and explain the adjustments on a line-by-line basis.
- (a) Jessica Ltd sold inventory during the current period to its wholly-owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for $8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows:RequiredSalesCost of Sales InventoryDr15 000Cr 13 000 Cr 2 000DeferredTaxAsset Dr 300 Income Tax ExpenseCr 300(i) Discuss whether the entries suggested by Li Chen are correct, explaining on a line-by-line basis the correct adjustment entry.(ii)Determine the consolidation worksheet entries in the following year, assuming the inventory has been –sold, and explain the adjustments on a line-by-line basis. (b) On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in Liala Ltd book was $600000 (costs $900000, accumulated depreciation $300000). This plant has a remaining useful…Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for $8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows: Sales Cost of Sales Inventory Deferred Tax Asset Income Tax Expense Dr Cr Cr Dr Cr 15 000 300 13 000 2 000 300 Required Discuss whether the entries suggested by Li Chen are correct, explaining on a line-by-line basis the correct adjustment entry. Determine the consolidation worksheet entries in the following year, assuming the inventory has been –sold, and explain the adjustments on a line-by-line basis. On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in Liala Ltd book was $600000 (costs $900000, accumulated depreciation…essica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for $8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows: Required (i) Discuss whether the entries suggested by Li Chen are correct, explaining on a line-by-line basis the correct adjustment entry. (ii)Determine the consolidation worksheet entries in the following year, assuming the inventory has been –sold, and explain the adjustments on a line-by-line basis. (b) On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in Liala Ltd book was $600000 (costs $900000, accumulated depreciation $300000). This plant has a remaining useful life of five (5) years form the date of sale. The group measures its property plants and equipment…
- Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for$8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as attached: please answer the below: (i) Discuss whether the entries suggested by Li Chen are correct, explaining on a line-by-line basis the correct adjustment entry.(ii)Determine the consolidation worksheet entries in the following year, assuming the inventory has been –sold, and explain the adjustments on a line-by-line basis.a) Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for $8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows:RequiredSalesCost of Sales InventoryDr15 000Cr 13 000 Cr 2 000DeferredTaxAsset Dr 300 Income Tax ExpenseCr 300(i) Discuss whether the entries suggested by Li Chen are correct, explaining on a line-by-line basis the correct adjustment entry. (2.5 marks)(ii)Determine the consolidation worksheet entries in the following year, assuming the inventory has been –sold, and explain the adjustments on a line-by-line basis. (b) On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $450000 when its’ carrying value in Liala Ltd book was $600000 (costs $900000, accumulated depreciation $300000). This plant has a…Addo Plc owns many subsidiaries and 25% of Vivian Plc. In the year ended 31 December 2018, Addo Plc sold goods to Vivian for GH¢200,000, earning a gross profit margin of 20%. Vivian Plc held GH¢60,000 of them in its inventories at the year end. By what amount should Addo Plc’s cost of sales be increased when preparing its consolidated statement of profit or loss?
- During the year ended 31 March 2020, Newcastle Plc (Newcastle) sold goodsoriginally costing £35.8 million to its subsidiary London Ltd (London) for a sales price of £40.2 million. On 31 March 2020, 70% of these goods remained in the inventories of London. By 31 March 2020, London had paid £21.8 million of the invoices due for this inventory. Newcastle owns 80% of the ordinary share capital of London. What is the group’s share in the unrealized profit?Jessica Ltd sold inventory during the current period to its wholly-owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for $8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows: SALES Dr 15000 Cost of sales Cr 13000 Inventory Cr 2000 Deferred tax asset Dr 300 Income tax expense Cr 300 Required (i) Discuss whether the entries suggested by Li Chen are correct, explaining on a line-by-line basis the correct adjustment entry. (ii) Determine the consolidation worksheet entries in the following year, assuming the inventory has been –sold, and…(a) Jessica Ltd sold inventory during the current period to its wholly-owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for $8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows:Required(i) Discuss whether the entries suggested by Li Chen are correct, explaining on a line-by-line basis the correct adjustment entry.
