Al Bruno's review wants you to go on to consider consolidation adjustments for intra-group transactions in more detail. Al wants to ensure you have the basics right before you go on to dealing with the impact of these adjustments on the consolidated financial statements. He tells you that profit on merchandise sales was 60%* for Parts Palace and 70%* for Smashed for all sales transactions including inter-group transactions (* = as a percentage of sales). Tax rate 30%.

He has asked you to provide him with a spreadsheet showing the consolidation adjustments in journal form only for the following intra-group transactions during 2019 (all figures below are in $000s):

1. Parts Palace sold Smashed merchandise at a price of $300.

2. Smashed sold Parts Palace merchandise at a price of $400.

3. $75 remained owing by Parts Palace at 31 December 2019 for the merchandise sold to it by Smashed.

4. Parts Palace's inventories included merchandise bought from Smashed of:

a. $50 at the beginning of 2019, and

b. $60 at the end of 2019.

5. Smashed's 2019 inventories included merchandise bought from Parts Palace of:

a. Beginning: $30, and

b. Closing: $35.

6. The 'Other non-current assets' on Parts Palace's balance sheet includes a long-term loan to Smashed of $800.

7. The terms of the loan to Smashed require 8% annual interest payments. The loan was made on 1 January 2019 and interest is paid on 31 December each year.

Prepare the consolidation journal entries only for the above intragroup transactions for the year ended 31 December 2019.