Which of the following will be included in a consolidation entry for 2017?
A) Debit loss for $5,000.
B) Credit loss for $5,000.
C) Credit land for $5,000.
D) Debit gain for $5,000.
E) Credit gain for $5,000.

Question

Quizplus · Accepted Answer

A consolidation entry is made to eliminate the effect of intercompany transactions and to arrive at consolidated financial statements. The elimination entry for a loss would be to credit the account, so option B is the correct choice. Options A, C, D, and E would not be included in a consolidation entry as they do not relate to intercompany transactions.

Which of the Following Will Be Included in a Consolidation