PKT Ltd wanted to achieve a 25% GP for each sale completed. Inventory sales between AB and CF Ltd amounted to R1875 000 for the year ended 31 December 2022. Inventory on hand in CF Ltd previously purchased from PKT Ltd: R620 000 (31 December 2022) R750 000 (31 December 2021) Prepare the journal entries (with narrations) for the year ended 31 December 2022. Assume a tax rate of 30%.

PKT Ltd wanted to achieve a 25% GP for each sale completed. Inventory sales between AB and CF Ltd amounted to R1875 000 for the year ended 31 December 2022. Inventory on hand in CF Ltd previously purchased from PKT Ltd: R620 000 (31 December 2022) R750 000 (31 December 2021) Prepare the journal entries (with narrations) for the year ended 31 December 2022. Assume a tax rate of 30%.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 2RE: Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of...

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