... Currency Transactions PART UNIT 2 Determine the eliminating entries necessary for the 20X9 consoli d financial ments Eliminating entries, august 18, 20X9;
E (1) outstanding bonds 1,000,000
Adam Corp share 80% *1,000,000 = 800, 0000
Eliminating Adam Corp 200,000
At times, work paper adjustments to accounting data may be needed before appropriate eliminating entries can be accomplished (Copeland, 2008). The need for adjustments generally arises because of in-transit items where only one of the affiliates has recorded the effect of an intercompany transaction.
E (2) inters accrual