Current and prior periods intragroup transfers of inventories  LO2, 3 Charlotte Ltd owns all the share capital of Aloise Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2019 or 30 June 2020.

(a) On 1 May 2019, Charlotte Ltd sold inventories to Aloise Ltd for $10 000 on credit, recording a profit of $2000. Half of the inventories were unsold by Aloise Ltd at 30 June 2019 and none at 30 June 2020. Aloise Ltd paid half the amount owed on 15 June 2019 and the rest on 1 July 2019.

(b) On 10 June 2019, Aloise Ltd sold inventories to Charlotte Ltd for $15 000 in cash. The inventories had previously cost Aloise Ltd $12 000. Half of these inventories were unsold by Charlotte Ltd at 30 June 2019 and 30% at 30 June 2020.

(c) On 1 January 2020, Aloise Ltd sold inventories costing $6000 to Charlotte Ltd at a transfer price of $7000, paid in cash. The entire inventories were sold by Charlotte Ltd to external entities by 30 June 2020. 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.