Equity Accounting adjusting entries where investor prepares consolidated financial statements (16 marks)

Nett Ltd (a Parent company & investor) acquired a 30% interest in Ball Ltd (associate) for $120 000 cash on 1 July 2022. The directors of Nett Ltd believe this investment represents significant influence over the investee. The equity of Ball Ltd at the acquisition date was as follows.

Profits and dividends for the years ended 30 June 2023 to 2025 were as follows.

Profit before tax Income tax expense Dividends paid

2023 $ 160 000 $ 65 000 $ 140 000

2024 120 000 40 000 60 000

1. Prepare the consolidation worksheet entries to account for Nett Ltd's interest in the associate/joint venture, Ball Ltd.Record Equity accounting adjustments in General Journal format for 30 June 2023 and 2024.
2. Calculate the carrying amount of the investment in Ball Ltd at 30 June 2024.