Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. unite ltd provided a loan of $1,000,000 to its sub

Unite Ltd provided a loan of $1,000,000 to its subsidiary Inspire Ltd. Interest of $100,000...

80.2K

Verified Solution

Question

Accounting

Unite Ltd provided a loan of $1,000,000 to its subsidiary Inspire Ltd. Interest of $100,000 was charged during the year ended 30 June 2020. On consolidation, which of the following elimination entries is needed at 30 June 2020 in relation to the interest charged?

a.

Dr Interest expense $100 000

Cr Interest revenue $100 000

b.

Dr Interest expense $100 000

Cr Cash $100 000

c. No elimination is needed

d. Dr Interest revenue $100 000

Cr Interest expense $100 000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

General Management
1.2K views

   * How does the MEAT model compare with the process model, Which is more effective...

Biology
1.2K views

3 Why did Ray Bradbury choose science fiction as the genre in which to convey...

Physics
1.2K views

5 A charged particle q is shot from a large distance with speed v towards...

Basic Math
1.2K views

For f(x)=x and g(x)=x + 4, find the following composite functions and state the domain...

Algebra
1.2K views

B 11 N E a 5 8z 1 4m 7k 5 5 11 the values...

Algebra
1.2K views

the given interval wsing 4 left ch the curve and rectangles y x 5

Accounting
1.2K views

Determine which of the following statements are correct regarding the difference between physical flow...

Accounting
1.2K views

Pacific Corporation has 100,000 shares of $1 par value common stock and 20,000 shares of...

Accounting
1.2K views

Miller Outdoor Equipment (MOE) makes four models of tents. The model names are Rookie, Novice,...

Accounting
1.2K views

Anwar owns a rental home and is involved in maintaining it and approving renters. During...

Accounting
1.2K views

ECHO, INC. currently produces two products, Foxtrot, which sells for $10 per unit and have...

Accounting
1.2K views

Caitlyn Communications Income Statement Year Ended July 31, 2024 Net Sales Revenue Cost of Goods...