Engine Ltd owns all of the share capital of Train Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2021 or 30 June 2022.

On 1 July 2021, Engine Ltd had on hand inventory acquired from Train Ltd for $17 000. This inventory had cost Train Ltd $15 000 to make and was all sold to external parties in September 2021.

On 1 March 2021, Train Ltd sold a vehicle to Engine Ltd for 35 000. The vehicle had a carrying amount of $38 000 on the date of sale. Both companies depreciate vehicles at 20% p.a.

On 17 May 2022, Train Ltd purchased inventory from Engine Ltd for $26 000. The inventory had originally cost Engine Ltd $20 000. Of this inventory, 60% had been sold to external parties prior to 30 June 2022.

On 1 January 2022, Engine Ltd sold inventory to Train Ltd for $42 000. Train Ltd has classified this item as a non-current asset equipment with a useful life of three years. Engine Ltd paid $30 000 to acquire the inventory.

On 1 April 2022, Engine Ltd sold an item of plant to Train Ltd for $25 000, recording a before-tax profit of $4 000. Plant of this type is depreciated on a straight-line basis over a 4-year period.

On 1 January 2022, Train Ltd entered into an agreement with Engine Ltd to rent warehouse space for an annual rent of $15 000.

Required

In relation to the above intragroup transactions, prepare adjusting journal entries for the consolidation worksheet at 30 June 2022. Only the adjusting entries need be shown. Narrations are not required.

Journal for the answer to Question 2 expand the table if needed to contain your answer.

Date	Account	Dr	Cr