Fromage purchased 80% of the equity shares in Frais on 1 January 20X1. During the year ended 31 December 20X1, Fromage sold inventory to Frais at a sales price of £50,000. All of the goods remained in Frais' inventory. Fromage applied a margin of 20%. Extracts from the statement of profit or loss for the two entities are shown below: Fromage a. Revenue Cost of sales C. £000 1,000 e. (650) Revenue 1700 Cost of sales 840 What would be the revenue and cost of sales figures reported in the consolidated statement of profit or loss for the year ended 31 December 20X1? Answer to the nearest £000 Revenue 1700 Cost of sales 860 d. Revenue 1550 Cost of sales 800 Frais £000 b. None of these options are correct Revenue 1750 Cost of sales 910 750 (250)

Fromage purchased 80% of the equity shares in Frais on 1 January 20X1. During the year ended 31 December 20X1, Fromage sold inventory to Frais at a sales price of £50,000. All of the goods remained in Frais' inventory. Fromage applied a margin of 20%. Extracts from the statement of profit or loss for the two entities are shown below: Fromage a. Revenue Cost of sales C. £000 1,000 e. (650) Revenue 1700 Cost of sales 840 What would be the revenue and cost of sales figures reported in the consolidated statement of profit or loss for the year ended 31 December 20X1? Answer to the nearest £000 Revenue 1700 Cost of sales 860 d. Revenue 1550 Cost of sales 800 Frais £000 b. None of these options are correct Revenue 1750 Cost of sales 910 750 (250)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 5RE: Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the...

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