Find the amount of cost of goods sold

Assignment Help Accounting Basics
Reference no: EM132572718

Question - Liala Ltd acquired all the issued shares of Jordan Ltd on 1 January 2015. The following transactions occurred between the two entities:

On 1 June 2016, Liala Ltd sold inventory to Jordan Ltd for $12,000, this inventory previously costed Liala Ltd $10,000. By 30 June 2016, Jordan Ltd had sold 20% of this inventory to other entities for $3,000. The other 80% was all sold to external entities by 30 June 2017 for $13,000.

During the 2016-17 period, Jordan Ltd sold inventory to Liala Ltd for $6,000, this being at cost plus 20% mark-up. Of this inventory, 20 % remained on hand in Liala Ltd at 30 June 2017. The tax rate is 30%.

Required -

(i) Prepare the consolidation worksheet entries for Liala Ltd at 30 June 2017 in relation to the intra-group transfers of inventory.

(ii) Find the amount of cost of goods sold to be reported in the consolidated income statement for 2017 relating to the relevant intra-group sales.

Reference no: EM132572718

Questions Cloud

Contrast the crimes of treason-sedition and sabotage : Define, compare, and contrast the crimes of: treason, sedition, and sabotage. They are separate offenses, aimed at different types of behavior,
American court system : The American court system has one of the highest incarceration rates in the world.
Show how the van would appear in the balance sheet : Nevertire Ltd purchased a delivery van costing $52,000. Show how the van would appear in the balance sheet prepared at end of year 2 using Straight-line method
Identify three attributes of the law enforcement : Identify three attributes of the law enforcement officer in question that make them a model of ethical behavior or a positive role model.
Find the amount of cost of goods sold : Find the amount of cost of goods sold to be reported in the consolidated income statement for 2017 relating to the relevant intra-group sales
What amount the retailer debit to the merchandise account : The retailer receives a 30% trade discount and credit terms of 2/10, n/30. What amount should the retailer debit to the Merchandise Inventory account
Calculate the expected returns and betas : Suppose we have two risky assets, Stock I and Stock J, and a risk-free asset. Stock I has an expected return of 25%
Calculate the operating cash flow for year : El Dorado Storage has the following projections for Year 1 of a capital budgeting project.
What is the value of the firm before the restructuring : The YTM of the new debt is 10.83% and the tax rate is 32%. What is the value of the firm before the restructuring?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd