Parrish has a wholly-owned subsidiary, Sultan. The accounting year ends December 31. During 2020, the following intercompany service and financing transactions occur:
•Parrish provided administrative support services to Sultan, billed at $2,000, and costing Parrish $1,300. At the end of 2020 Sultan still owed Parrish $100 for services provided.
•Sultan provided technological services to Parrish. During 2020, Sultan billed Parrish $4,500 for services provided. These services cost Sultan $3,200. At the end of 2020, Parrish still owed Sultan $250 for services provided.
•Parrish loaned Sultan $20,000 on July 1, 2017, at an annual interest rate of 4%. Interest is paid yearly on June 30.
Required
Make the consolidation eliminating entries at December 31, 2020, related to these intercompany service and financing transactions.

Question

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The Answer of Parrish has a wholly-owned subsidiary, Sultan. The accounting year ends December 31. During 2020, the following intercompany service and financing transactions occur:
•Parrish provided administrative support services to Sultan, billed at $2,000, and costing Parrish $1,300. At the end of 2020 Sultan still owed Parrish $100 for services provided.
•Sultan provided technological services to Parrish. During 2020, Sultan billed Parrish $4,500 for services provided. These services cost Sultan $3,200. At the end of 2020, Parrish still owed Sultan $250 for services provided.
•Parrish loaned Sultan $20,000 on July 1, 2017, at an annual interest rate of 4%. Interest is paid yearly on June 30.
Required
Make the consolidation eliminating entries at December 31, 2020, related to these intercompany service and financing transactions.

Parrish Has a Wholly-Owned Subsidiary, Sultan