During August 20X5, Lazada Ltd acquired 75% of the issued capital of Zalora Ltd in...
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During August 20X5, Lazada Ltd acquired 75% of the issued capital of Zalora Ltd in exchange for $8,500,000. In October 20X5, Lazada Ltd extended a one-year loan, totalling $1,200,000, to Zalora Ltd with the rate of 6% per annum, with interest payable every month. Assume both companies have financial year end in December, with regards to the loan, the entry required on consolidation is: a. Dr. Interest Revenue $18 000 Cr. Interest Expense $18 000 b. Dr. Interest Revenue $13 500 Cr. Interest Expense $13 500 c. Dr. Loan receivable $1 200 000 Cr. Loan payable $1 200 000 d. No entries required.
During August 20X5, Lazada Ltd acquired 75% of the issued capital of Zalora Ltd in exchange for $8,500,000. In October 20X5, Lazada Ltd extended a one-year loan, totalling $1,200,000, to Zalora Ltd with the rate of 6% per annum, with interest payable every month. Assume both companies have financial year end in December, with regards to the loan, the entry required on consolidation is: a. Dr. Interest Revenue $18000 Cr. Interest Expense $18000 b. Dr. Interest Revenue $13500 Cr. Interest Expense $13500 c. Dr. Loan receivable $1200000 Cr. Loan payable $1200000 d. No entries required
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