P Ltd Provides Management Services to Its Subsidiary Company S $\quad\quad\$ 100,000$

question 12

Multiple Choice

P Ltd provides management services to its subsidiary company S Ltd for $100 000 per year.At the end of the current year,S Ltd owes $20 000 of this fee.The entry required on consolidation is:

• A) Dr. Management Fee Revenue \(\quad\quad\$ 100,000\)
• Cr. Management Fee Expense \(\quad\quad\$ 100,000\)
• B) Dr. Management Fee Revenue \( \quad\quad\$ 100,000 \)
• Cr. Management Fee Expense \(\quad\quad \$ 100,000 \)
• Dr. Accrued Fees Payable \( \quad\quad\quad\quad\$ 20,000 \)
• Cr. Accrued Fees Receivable \( \quad\quad\quad \$ 20,000 \)
• C) Dr. Management Fees Revenue \(\quad\quad\$ 80,000\)
• Cr. Management Fees Expense \(\quad\quad\$ 80,000\)
• D) none of the above

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