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Intragroup transaction journal entries for: During the period 1 July 2015 to 30 June 2017, the following intragroup transactions have occurred...
Intragroup transaction journal entries for:
During the period 1 July 2015 to 30 June 2017, the following intragroup transactions have occurred between Woolly Ltd and Jumper Ltd:
(T1) At 30 June 2017, Woolly Ltd approved and declared a final dividend of $12,000, and Jumper Ltd approved and declared a final dividend of $18,000.
(T2) On 1 January 2016, Woolly Ltd provided a $500,000 loan to Jumper Ltd. The interest rate on this loan is 10%, and interest is paid each year on 30 June. At 30 June 2017, no principal repayments have been made on the loan.
(T3) In April 2016, Woolly Ltd sold inventory to Jumper Ltd for $24,000. The inventory had previously cost Woolly Ltd $18,000. By 30 June 2016, three-quarters of this inventory had been sold to Scarf Ltd for $22,000. The remainder of the inventory was sold to Fluffy Jacket Ltd in August 2016 for $7,500.
(T4) On 3 June 2017, Jumper Ltd sold inventory to Woolly Ltd for $42,000. The transfer price included a mark-up of 20% on cost. At 30 June 2017, one-half of this inventory was still on hand.
(T5) In November 2015, Jumper Ltd sold inventory to Woolly Ltd at a transfer price of
$45,000. The inventory had previously cost Jumper Ltd $31,000. All of this inventory was subsequently sold to Boots Ltd in July 2016 for $52,500.
(T6) On 1 January 2016, Woolly Ltd sold machinery to Jumper Ltd for $120,000. The machinery had a written down value at the time of sale of $90,000. For this type of machinery, both entities charge depreciation at a rate of 20% p.a. straight-line.
(T7) On 1 March 2017, Jumper Ltd sold equipment to Woolly Ltd for $55 000, this asset having a carrying amount at the time of sale of $46,000. Jumper Ltd had treated the asset as a depreciable non-current asset, being depreciated at 15% on cost, whereas Woolly Ltd records the equipment as inventory. Woolly Ltd sold this asset to Beanie Ltd on 15 June 2017 for $61,500.
