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French Ltd Owns 100 Per Cent of the Issued Capital

Question 23

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French Ltd owns 100 per cent of the issued capital of Pastry Ltd.During the period ended 30 June 2006 Pastry Ltd sold inventory that cost $190,000 for $300,000 to French Ltd.Sixty per cent of this inventory remains on hand in French Ltd at the end of that year.Both companies use a perpetual inventory system.The taxation rate is 30 per cent. What consolidation journal entries are required in relation to the inter-company transaction for the period ending 30 June 2007?


A) French Ltd owns 100 per cent of the issued capital of Pastry Ltd.During the period ended 30 June 2006 Pastry Ltd sold inventory that cost $190,000 for $300,000 to French Ltd.Sixty per cent of this inventory remains on hand in French Ltd at the end of that year.Both companies use a perpetual inventory system.The taxation rate is 30 per cent. What consolidation journal entries are required in relation to the inter-company transaction for the period ending 30 June 2007? A) B) C) D) E) None of the given answers.
B) French Ltd owns 100 per cent of the issued capital of Pastry Ltd.During the period ended 30 June 2006 Pastry Ltd sold inventory that cost $190,000 for $300,000 to French Ltd.Sixty per cent of this inventory remains on hand in French Ltd at the end of that year.Both companies use a perpetual inventory system.The taxation rate is 30 per cent. What consolidation journal entries are required in relation to the inter-company transaction for the period ending 30 June 2007? A) B) C) D) E) None of the given answers.
C) French Ltd owns 100 per cent of the issued capital of Pastry Ltd.During the period ended 30 June 2006 Pastry Ltd sold inventory that cost $190,000 for $300,000 to French Ltd.Sixty per cent of this inventory remains on hand in French Ltd at the end of that year.Both companies use a perpetual inventory system.The taxation rate is 30 per cent. What consolidation journal entries are required in relation to the inter-company transaction for the period ending 30 June 2007? A) B) C) D) E) None of the given answers.
D) French Ltd owns 100 per cent of the issued capital of Pastry Ltd.During the period ended 30 June 2006 Pastry Ltd sold inventory that cost $190,000 for $300,000 to French Ltd.Sixty per cent of this inventory remains on hand in French Ltd at the end of that year.Both companies use a perpetual inventory system.The taxation rate is 30 per cent. What consolidation journal entries are required in relation to the inter-company transaction for the period ending 30 June 2007? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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