* The parent provided services to the subsidiary, billed at $10,000. The services cost the parent $8,000. At the end of the year, the subsidiary still owes the parent $2,000 related to these services. RequiredPrepare the eliminating entries for the year-end consolidation working paper, related to these two transactions. Both companies report service costs in operating expenses and service revenues in an other revenues account. Amounts owing between parent and subsidiary are reported in accounts receivable and accounts payable
During the current year, a parent company has the following transactions with its subsidiary: * The subsidiary provided services to the parent,…
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