Current and prior period intragroup debentures   LO2, 7 Pedro Ltd owns all the share capital of Juan Ltd. The following transactions are independent.

(a) On 1 January 2019, Juan Ltd issues 10 000 debentures at the nominal value of $10 with an interest rate of 8% p.a., payable half-yearly on 30 June and 31 December each year. Debentures are to be redeemed after 3 years. Pedro Ltd takes 100% of the debentures issued.

(b) On 1 January 2019, Juan Ltd issues 10 000 debentures at the nominal value of $10 with an interest rate of 8% p.a., payable half-yearly on 30 June and 31 December each year. Debentures are to be redeemed after 3 years. Pedro Ltd takes 50% of the debentures issued.

(c) On 1 January 2019, Juan Ltd issues 10 000 debentures at the nominal value of $10 with an interest rate of 8% p.a., payable half-yearly on 30 June and 31 December each year. Debentures are to be redeemed after 3 years. Pedro Ltd takes 25% of the debentures issued. On 31 March 2019, Pedro Ltd acquired another 25% of these debentures cum div. on the open market for $9 each. Required In relation to the above intragroup transactions: 1. prepare adjusting journal entries for the consolidation worksheet at 30 June 2019 and 30 June 2020 2. explain in detail why you made each adjusting journal entry.