Jessica ltd owns all of the shares of Amelie ltd On 1 January 2019 Jessica ltd acquired $10 000 worth of inventories for cash from Amelie ltd The inventories had previously cost Amelie ltd $6 000 By t

The journal entries for the above transactions would be as follows:

1. On 1 January 2019:

Inventory (at cost) 6,000 Cash 6,000

(To record the transfer of inventories from Amelie ltd to Jessica ltd)

2. On 1 January 2019:

Inventory (at cost) 10,000 Cash 10,000

(To record the purchase of inventories by Jessica ltd from Amelie ltd)

3. On 30 June 2019:

Cash 20,000 Sales revenue 20,000

(To record the sale of inventories by Jessica ltd to an external party)

4. On 30 June 2019:

Cost of goods sold 6,000 Inventory (at cost) 6,000

(To record the cost of goods sold for the inventories transferred from Amelie ltd to Jessica ltd)

Overall, the above transactions result in a profit of $4,000 for Jessica ltd ($20,000 sales revenue - $6,000 cost of goods sold - $10,000 purchase cost)