Intragroup transfers of inventories, non-current assets, services and dividends  LO2, 3, 4, 5, 6 Karen Ltd owns all the share capital of Anne Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2018 to 30 June 2020.

(a) In February 2018, Karen Ltd sold inventories to Anne Ltd for $6000, at a mark-up of 20% on cost. One-quarter of these inventories were unsold by Anne Ltd at 30 June 2018 to external entities, and none at 30 June 2019.

(b) On 1 January 2018, Anne Ltd sold a new tractor to Karen Ltd for $20 000. This had cost Anne Ltd $16 000 on that day. Both entities charged depreciation at the rate of 10% p.a. on the diminishing balance. The tractor was still on hand with Karen Ltd at 30 June 2020.

(c) A non-current asset with a carrying amount of $1000 was sold by Karen Ltd to Anne Ltd for $800 on 1 January 2020. Anne Ltd intended to use this item as inventories, being a seller of second-hand goods. The item was still on hand at 30 June 2020.

(d) Anne Ltd rented a spare warehouse to Karen Ltd starting from 1 July 2019 for 1 year. The total charge for the rental was $300, and Karen Ltd paid half of this amount to Anne Ltd on 1 January 2020 and the rest is to be paid on 1 July 2020.

(e) In December 2019, Anne Ltd paid a $1500 interim dividend.

(f) During March 2020, Anne Ltd declared a $3000 dividend. The dividend was paid in August 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.