Background Information:

b) Complete the consolidated worksheet for the year ending 30 June 2022 (In Sheet 3: Consolidated Worksheet). i. Entering the consolidated journal entries in Part (a) above to the appropriate debit and credit columns in the Consolidated Worksheet; and ii. Completing the Group figures in the Consolidated Worksheet.

On 1/07/2019 MLtd acquired: 100% of the issued shares of NLtd for: $2,592,000 At the date of acquisition, the Owners' Equity of NLtd consisted of: Share capital $1,166,400 Plant replacement reserve $291,600 Retained earnings $218,700 $1,676,700 As at 30/06/2022 The accounts of the two companies appear as follows: Sales e Cost of Goods Sold Depreciation expense Interest expense Other expenses MLtd $ 4,147,500 2,488,500 207,300 165,900 420,700 NLtd $ 2,089,800 1,358,300 104,400 62,080 67,520 Other Income pils Interest revenue Dividend revenue 93,100 226,800 OO es Income tax expense Net Profit after Tax Retained earnings (01/07/2021) Available for appropriation 355,500 829,500 1,244,100 2,073,600 149,200 348,300 364,500 712,800 Interim dividend paid Final dividend declared Retained earnings (30/06/2022) 194,400 324,000 1,555,200 97,200 129,600 486,000 Share Capital Plant replacement reserve Total Owner's Equity 3,369,600 259,200 5,184,000 1,166,400 291,600 1,944,000 Loan payable (due 30/06/2024) Dividend payable Deferred Tax Liability Other liabilities Total Liabilities 0 324,000 388,800 583,200 1,296,000 388,000 129,600 32,400 98,000 648,000 Total Liabilities & Owner's Equity 6,480,000 2,592,000 Assets Dividend receivable Inventory Property, Plant & Equipment Accumulated depreciation Land Investment in NLtd Loan receivable Other assets Total Assets 129,600 0 907,200 155,500 1,749,600 1,036,800 -699,900 -207,400 1,101,600 1,036,800 2,592,000 0 388,000 0 311,900 570,300 6,480,000 2,592,000 Additional information: a) At date of acquisition, all identifiable net assets of NLtd were recorded at fair value, with the exception of a block of land in the books of NLtd. The block of land had a carrying value of: and a fair value of: $1,036,800 $1,450,000 b) The directors apply the impairment test for goodwill annually. at 30/06/2022 The cumulative goodwill impairment write-downs for prior years totalled: $500,000 1/07/2020 C) An equipment owned by NLtd was sold to MLtd. Cost of the equipment was: Accumulated depreciation of the equipment was: The asset was sold for: MLtd estimated this item had a remaining useful life of: and residual value of: $463,000 $165,000 $414,000 5 $0 years $272,000 d) The opening inventory of MLtd includes unrealised profit of: on inventory transferred from NLtd during the prior financial year. All of this inventory was sold by MLtd to parties external to the 30/06/2022 Group. e) During the current year, MLtd purchased inventory from N Ltd for: This inventory had previously cost NLtd: Percentage of this inventory sold to outsiders by MLtd during the year was: $1,179,000 $471,000 50% f) NLtd borrowed a loan from MLtd amounting to: 30/06/2022 NLtd paid the annual interest for the intra group loan at arate ol $388,000 16% g) During the current year, MLtd paid QLtd, an external party for management fees expense amouning to: $2,000 h) The following are dividends paid and declared by NLtd to M Ltd: Interim dividend paid Final dividend declared 97,200 129,600 i) The tax rate is: 30% M Ltd N Ltd Group Consolidated Entries Dr Cr Ref Ref Sales less Cost of Goods Sold $4,147,500 $2,089,800 $2,488,500 $1,358,300 Depreciation expenses Interest expenses Other expenses $207,300 $104,400 $165,900 $62,080 $420,700 $67,520 Other Income plus Interest revenue Dividend revenue $93,100 $226,800 $0 $0 Jess Income tax expense $355,500 $149,200 Net Profit Retained earnings (01/07/2021) $829,500 $348,300 $1,244,100 $364,500 Available for appropriation $2,073,600 $712,800 Interim dividend paid Final dividend declared Retained earnings (30/06/2022) $194,400 $97,200 $324,000 $129,600 $1,555,200 $486,000 Share Capital Plant Replacement Reserve BCVR / Revaluation Reserve Total Owner's Equity $3,369,600 $1,166,400 $259,200 $291,600 $0 $0 $5,184,000 $1,944,000 Loan payable (due 30/06/2024) Dividend payable Deferred Tax Liability Other liabilities Total Liabilities $0 $388,000 $324,000 $129,600 $388,800 $32,400 $583,200 $98,000 $1,296,000 $648,000 Total Liabilities & Owner's Equity $6,480,000 $2,592,000 Assets Dividend receivables Inventory Property, Plant & Equipment Accumulated depreciation Land Investment in Small Ltd Loan receivable Goodwill Accumulated Impairment Loss Deferred Tax Asset $129,600 $0 $907,200 $155,500 $1,749,600 $1,036,800 -$699,900 - $207,400 $1,101,600 $1,036,800 $2,592,000 $0 $388,000 $0 $0 $0 $0 $0 $0 $0 Other assets Total Assets $311,900 $570,300 $6,480,000 $2,592,000 $0 $0 $0 $0