Analyse the completed worksheet attached for the Galway Group. Using the information provided in the worksheet, prepare an evaluation report, detailing each omission and error. For each error:

1. List the accounts and amounts, which are incorrect for each consolidation adjustment.

2. Explain WHY the entry is incorrect. Include formulas where possible in your explanation.

3. Provide the correct entry that should have been in the worksheet and explain each account and amount for this entry.

4. Explain the overall effect each error or omission will have (in amount) on the Group financial statements if it is not corrected.

Galway Dublin Ref Adjustments Ref Ltd ($) Ltd ($) Dr ($) Cr ($) Sales revenue 180 000 131 000 2 25 000 Cost of sales 88 000) 58 000) 22 000 2 Gross profit 92 000 73 000 Dividend revenue 24 000 18 000 26 000 Service fee revenue 90 000 5 90 000 Proceeds from sale 148 000 3 120 000 of equipment Depreciation (12 000) (8 000) 1 000 3 Impairment loss - 1c 5 000 Goodwill Carrying amount of (40 000) 118 000 3 equipment sold Service fee expense (90 000) 90 000 5 Other expenses (32 000) 15 000) Profit before tax 162 000 68 000 Less: Income tax (48 600) (20 400) 3 300 2 100 2 expense Profit for the year 113 400 47 600 Retained earnings 72 000 80 000 1b 80 000 (1/7/19 Dividend paid (18 000) 18 000 4 Dividend declared 26,000) 26 000 4 Retained earnings 159 400 109 600 (30/6/20) Share capital 165 000 95 000 1b 95 000 General reserve 30 000 25 000 1b 25 000 BCVR 1b 45 000 45,000 1a Shareholders' 354 400 229 600 equity Liabilities Accounts payable 37 000 3 000 Other Payables 24 600 9 000 Dividend payable 26 000 4 26 000 Deferred Tax 50 000 11 000 Liability Total liabilities 137 600 23 000 Total liabilities & 492 000 252 600 EquityAssets Galway Dublin Ref Dr ($) Cr ($) Ref Ltd ($) Ltd ($) Cash 25 000 22 600 Accounts receivable 12 000 8 000 Dividend receivable 52 000 26 000 4 Other receivables 9 000 12 000 Inventories 45 000 22 000 3 000 2 Investment in Dublin 240 000 240 000 1b Ltd Land 52 000 84 000 Equipment 60 000 78 000 2 000 3 Acc'd depreciation (38 000) (26 000) 3 1 000 Buildings 55 000 62 000 Acc'd depreciation (20 000) (15 000) Goodwill 5 000 1a 45 000 Less: Acc'd imp't loss 5 000 1c - Goodwill Deferred tax asset 2 2 100 300 3 Total assets 492 000 252 600