Current and prior periods intragroup transfers of inventories

Joey Ltd owns all of the share capital of Chandler Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2022 or 30 June 2023.

1. In January 2023, Joey Ltd sells inventories to Chandler Ltd for $45 000 in cash. These inventories had previously cost Joey Ltd $30 000, and remain unsold by Chandler Ltd at the end of the period.
2. In February 2023, Joey Ltd sells inventories to Chandler Ltd for $51 000 in cash. These inventories had previously cost Joey Ltd $36 000, and are on-sold externally on 2 April 2023.
3. In February 2023, Chandler Ltd sells inventories to Joey Ltd for $66 000 in cash (original cost to Chandler Ltd was $48 000) and half are on-sold externally by 30 June 2023.
4. In March 2023, Joey Ltd sold inventories for $30 000 to Zara Ltd, an external entity. These inventories were transferred from Chandler Ltd on 1 June 2022. The inventories had originally cost Chandler Ltd $18 000, and were sold to Joey Ltd for $36 000.

Required

In relation to the above intragroup transactions:

1. Prepare adjusting journal entries for the consolidation worksheet at 30 June 2023, also provide the calculation working note amount.

2. Explain in detail why you made each adjusting journal entry.

(LO2 and LO3)