During the Year Ended 30 June 20X7 a Subsidiary Entity

question 12

Multiple Choice

During the year ended 30 June 20X7 a subsidiary entity sold inventory to its parent entity at a profit of $8 000.The goods had originally cost the subsidiary $20 000.At the end of 30 June 20X7 all the inventory was still on hand.Ignoring tax effects,the adjustment entry to deal with this transaction on consolidation during the year ended 30 June 20X8 would include the following line item:

• A)DR Cost of sales $8 000
• B)CR Cost of sales $8 000
• C)DR Cost of sales $20 000
• D)CR Cost of sales $20 000.

---

Definitions:

Caution

The practice of being careful, or avoiding risks and potential problems.

Space Zone

An area or sector designated for a specific purpose or function, often used in planning and organization contexts.

Prospect's Desk

A designated area or platform where potential customers or clients are contacted or managed.

Hairstyle Accordingly

Choosing a hairstyle that suits or matches a specific requirement, occasion, or dress code.