Assignment Question(s): Three Questions Each Carries 5 Marks) (total Marks 15)

Assignment Question(s): Three Questions Each Carries 5 Marks) (total Marks 15)
Q1. The following information extracted from the parent company Parent company loaned $1000 to Subsidiary with an interest rate of 5%.
Parent company made a sale to Subsidiary for $500 cash. The inventory had originally cost Parent company $200. Subsidiary then sold that same inventory to an outsider for $700.
Parent company made a sale to Sub for $800 cash. The inventory had originally cost Parent $300. Subsidiary has not yet sold that same inventory to an outsider.
Required:
Pass the elimination entries for the intercompany transactions.
Answer must be correct and according to the my slides method or i will not accept the solu