On 5 June 2019, a parent entity sold inventories to a subsidiary entity for $40...
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On 5 June 2019, a parent entity sold inventories to a subsidiary entity for $40 000. The inventories had previously cost the parent entity $36 000. All the inventories are still held by the subsidiary at reporting date, 30 June 2019. Ignoring tax effects, the adjustment entry in the consolidation worksheet at reporting date is: 1. Dr 36 000 Cash Sales revenue Cost of sales Cr 36 000 Dr 36 000 Inventories 36 000 II. Sales revenue Dr 36 000 Cash Cr 36 000 Inventories Dr 36 000 Cost of sales Cr 36 000 III. Sales revenue Dr 40 000 Cost of sales Cr 4 000 Cr 36 000 Dr 40 000 Inventories IV. Sales revenue Cost of sales Inventories Cr 36 000 4 000 O I. O II . III. O IV
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