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Franklin Ltd

Question 36

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Franklin Ltd. ,a subsidiary of Frayer Ltd. ,sold $500,000 of goods to its parent company in 20X1.At the end of 20X1,some of the goods were not sold and there was $90,000 of unrealized profit associated with these goods.The goods were sold in 20X2.At the end of 20X2,which of the following consolidating entries should be made with respect to the unrealized profits?


A) Franklin Ltd. ,a subsidiary of Frayer Ltd. ,sold $500,000 of goods to its parent company in 20X1.At the end of 20X1,some of the goods were not sold and there was $90,000 of unrealized profit associated with these goods.The goods were sold in 20X2.At the end of 20X2,which of the following consolidating entries should be made with respect to the unrealized profits? A) B) C) D)
B) Franklin Ltd. ,a subsidiary of Frayer Ltd. ,sold $500,000 of goods to its parent company in 20X1.At the end of 20X1,some of the goods were not sold and there was $90,000 of unrealized profit associated with these goods.The goods were sold in 20X2.At the end of 20X2,which of the following consolidating entries should be made with respect to the unrealized profits? A) B) C) D)
C) Franklin Ltd. ,a subsidiary of Frayer Ltd. ,sold $500,000 of goods to its parent company in 20X1.At the end of 20X1,some of the goods were not sold and there was $90,000 of unrealized profit associated with these goods.The goods were sold in 20X2.At the end of 20X2,which of the following consolidating entries should be made with respect to the unrealized profits? A) B) C) D)
D) Franklin Ltd. ,a subsidiary of Frayer Ltd. ,sold $500,000 of goods to its parent company in 20X1.At the end of 20X1,some of the goods were not sold and there was $90,000 of unrealized profit associated with these goods.The goods were sold in 20X2.At the end of 20X2,which of the following consolidating entries should be made with respect to the unrealized profits? A) B) C) D)

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