A Parent Entity Made an Advance of $50 000 to Its

question 26

Multiple Choice

A parent entity made an advance of $50 000 to its subsidiary. The parent charges interest of $3000 on this advance. The consolidation adjustment to eliminate the advance is:

• A) DR Interest revenue \(\quad\$ 53000\)
• CR Interest expense \(\quad\$ 53000\)
• B) DR Interest expense \(\quad\) \(\$ 53,000\)