Spoke Ltd is a wholly owned subsidiary of Wheel Ltd. The transactions for the period ending 30 June 2018 are shown below: Please prepare the consolidation adjustments for the group. Transactions: 1. During the accounting period, Spoke Ltd paid management fees of $24 000 to Wheel Ltd. 2. Spoke declared dividend of $12 000. 3. Wheel issues 2000 debentures with face value of $160, 7% interest rate. Spoke purchased 700 of these debentures on 01/07/2017.

Spoke Ltd is a wholly owned subsidiary of Wheel Ltd. The transactions for the period ending 30 June 2018 are shown below: Please prepare the consolidation adjustments for the group. Transactions: 1. During the accounting period, Spoke Ltd paid management fees of $24 000 to Wheel Ltd. 2. Spoke declared dividend of $12 000. 3. Wheel issues 2000 debentures with face value of $160, 7% interest rate. Spoke purchased 700 of these debentures on 01/07/2017.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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