Due to an expanding market, Australian gemstone manufacturer Moonstone Ltd established a subsidiary in New Zealand, Bluegem Ltd on 1 July 2021. Bluegem Ltd has opening share capital of NZ$720 000. Bluegem Ltds statement of comprehensive income for the year ended 30 June 2022 and statement of financial position at that date appear as follows:

Bluegem Ltd

Statement of Comprehensive Income for period ended 30 June 2022

	NZ$	NZ$
Sales		600 000
Less: Cost of goods sold
Purchases	450 000
Less: Closing Inventory	210 000	240 000
Gross profit		360 000
Less: Depreciation	60 000
Other expenses	120 000	180 000
Operating profit		180 000
Less: Dividends paid		40 000
Retained earnings (30 June 2022)		140 000

Bluegem Ltd

Statement of Financial Position as at 30 June 2022

Assets	NZ$	NZ$
Bank		60 000
Accounts receivable		60 000
Inventory		210 000
Plant and equipment	800 000
Accumulated depreciation	(60 000)	740 000
Total assets		1 070 000
Accounts payable	40 000
Loan	170 000	210 000
Net assets		860 000
Shareholders equity
Share capital		720 000
Retained earnings		140 000
		860 000

Relevant exchange rates were as follows:

1 July 2021	A$1.00 = NZ$1.250
1 May 2022	A$1.00 = NZ$1.150
30 June 2022	A$1.00 = NZ$1.130
Average for financial year	A$1.00 = NZ$1.190
Average 1/1/22 to 30/6/22	A$1.00 = NZ$1.160

Sales and expenses were earned and incurred evenly over the course of the financial year. The dividend was paid on 1 May 2022 and the inventory on hand at reporting date had been acquired evenly over the period 1 January to 30 June 2022.

Required Complete the worksheet provided to translate the financial statements of Bluegem Ltd from the New Zealand dollar functional currency to the Australian dollar presentation currency in accordance with AASB121.

Provide a reconciliation of the foreign currency translation reserve

	$	$	$
Sales
Less: Cost of goods sold
Purchases
Less: Closing Inventory
Gross profit
Less: Depreciation
Other expenses
Operating profit
Less: Dividends paid
Retained earnings (30 June 2022)
Assets
Bank
Accounts receivable
Inventory
Plant and equipment
Accumulated depreciation
Total assets
Accounts payable
Loan
Net assets
Shareholders equity
Share capital
Retained earnings

Foreign Currency Translation Reserve