Consolidation worksheet, consolidated financial statements, multiple subsidiaries, acquisitions on the same date   LO3 On 1 July 2020, Vanuatu Ltd acquired 80% of the issued shares in Vietnam Ltd (cum div.) for $44 760. At this date, Vietnam Ltd had not recorded any goodwill and all its identifiable net assets were recorded at fair value except for land and inventories for which the differences between the carrying amount and fair value at acquisition date were as follows. Carrying amount Fair value Land $ 8 000 $10 000 Inventories 12 000 15 000 Half of the inventories remained on hand at 30 June 2021. Immediately after the acquisition date, Vietnam Ltd revalued the land to fair value. The land was still on hand at 30 June 2021. At 1 July 2020, Vietnam Ltd acquired 75% of the issued shares of Brunei Ltd for $15 300. Brunei Ltd had not recorded any goodwill and all its identifiable assets and liabilities were recorded at fair value except for inventories for which the difference between the carrying amount and fair value at acquisition date was as follows. Carrying amount Fair value Inventories $10 000 $14 000 All the inventories were sold by 30 June 2021. At the acquisition date, the financial statements of the three companies showed the following. Vanuatu Ltd Vietnam Ltd Brunei Ltd Share capital $80 000 $32 000 $20 000 General reserve 20 000 3 200 — Asset revaluation surplus 16 000 6 400 — Retained earnings 6 400 4 800 (3 200) Dividend payable 12 000 3 200 — The following information was provided for the year ended 30 June 2021. Vanuatu Ltd Vietnam Ltd Brunei Ltd Sales revenue $108 000 $72 000 $54 000 Cost of sales 72 000 61 200 40 500 Gross profit 36 000 10 800 13 500 Less: Distribution and administrative expenses 9 000 2 700 2 880 27 000 8 100 10 620 Plus: Interim dividend revenue 1 280 1 500 — Profit before income tax 28 280 9 600 10 620 Income tax expense 8 480 1 920 2 400 Profit 19 800 7 680 8 220 Retained earnings (1/7/20) 6 400 4 800 (3 200) 26 200 12 480 5 020 Less: Dividend paid 4 000 — 1 000 Dividend declared 4 000 1 600 1 000 8 000 1 600 2 000 Retained earnings (30/6/21) $ 18 200 $10 880 $ 3 020 Additional information • Dividends declared for the year ended 30 June 2020 were duly paid. • Intragroup purchases (at cost plus 331∕3%) were as follows. – Vanuatu Ltd from Vietnam Ltd — $43 200 – Vietnam Ltd from Brunei Ltd — $37 800 • Intragroup purchases valued at cost to the purchasing company were included in inventories at 30 June 2021, as follows. – Vanuatu Ltd — $5400 – Vietnam Ltd — $4500 • The tax rate is 30%. Required 1. Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Vanuatu Ltd at 30 June 2021. 2. Prepare the consolidated statement of profit or loss and other comprehensive income and statement of changes in equity (not including movements in share capital and other reserves) at 30 June 2021.