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Need help on this Question, Please ASAP – F7 Consolidated

This topic has 4 replies, 3 voices, and was last updated 10 years ago by 3mr.

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March 8, 2014 at 12:27 pm #161781
Mark
Member
- Topics: 11
- Replies: 4
Hello,
Can someone please, help me and make me understand this question,
https://imgur.com/pTZKdJL
[IMG]https://i.imgur.com/pTZKdJL.jpg[/IMG]
thank you very much
I understand that
We add 21,300 + 8600 and then reduce this by 2m since its a intercompany sale
therefore if you reduce sales by 2m you do the same with purchases
But I don’t understand the deprication part.
I get
Sale = 2m
Cost = 1.4m
GP = 600k
What do I do next, thank you
March 8, 2014 at 12:34 pm #161783
MikeLittle
Keymaster
- Topics: 27
- Replies: 23200
Add the $600 pup to consolidated cost of sales
March 8, 2014 at 12:37 pm #161785
Mark
Member
- Topics: 11
- Replies: 4
What about the 10% Depreciation? part, i don’t understand that as well , Please explain thank you very much
March 8, 2014 at 7:12 pm #161810
MikeLittle
Keymaster
- Topics: 27
- Replies: 23200
Assume that I do not have the question in front of me (I don’t have the question in front of me!)
Now, give me enough detail from the question so that I have a sporting chance of resolving the issue for you
March 9, 2014 at 9:21 am #161825
3mr
Participant
- Topics: 24
- Replies: 39
Is it right to apply these adjusting entries to the group:
Dr. Sales 600
Cr. Plant 600
Dr. Accumiliated depreciation 200
Cr. Depreciation expense 200
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