Below are the draft accounts of Parent Co and its wholly$-$owned

subsidiaries and of Associate Co$.$ Parent Co acquired $20\%$ of the equity

capital of Associate Co five years ago when the latter$$s retained profits

stood at $$60,000.$

Summarised statement of financial positions:

Parent Co and

subsidiaries Associate Co

$$000$ $$000$

Property, plant and equipment $400180$

Investment in Associate at cost $80$

Loan to Associate Co $30$

Current assets $19070$

Loan from Parent Co $(30)$

$700220$

Share capital $200100$

Retained profits $500120$

$700220$

Summarised statement of profit or loss:

Parent Co and

subsidiaries Associate Co

$$000$ $$000$

Profit before tax $120100$

Taxation $(30)(20)$

$9080$

Required:

Prepare the journal entries to incorporate the operating results of the

Associate Co using the equity method of accounting and prepare the

consolidated statement of financial position and statement of profit or

loss.