Font Paragraph Question 2: Consolidations 2 (18 marks) Green Ltd owns all of the share capital of Leaf Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2020 or 30 June 2021 (a) On 1 July 2020, Green Ltd lent Leaf Ltd the sum of $25 000. The loan is repayable in ten years and carries an annual interest charge of 4%. At 30 June 2021, both companies have recognized the interest for the year but no cash has been exchanged (b) In February 2021, Green Ltd sells inventories to Leaf Ltd for $11 000 in cash. These inventories had previously cost Green Ltd $8 000, and are on-sold externally on 2 April 2021. (c) On 28 June 2021, Leaf Ltd declared a final dividend of $15 000. Shareholder approval is not required in relation to dividends. (d) In March 2021, Green Ltd sold inventories for $15 000 to Zara Ltd, an external entity. These inventories were transferred from Leaf Ltd on 1 June 2020. The inventories had originally cost Leaf Ltd $4000, and were sold to Green Ltd for $11 000. (e) On 1 April 2020, Leaf Ltd sold an item of plant to Green 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. (f) In July 2020, Green Ltd sells an item of inventory to Leaf Ltd for $12 000 in cash, Leaf Ltd treats the item as machinery. The inventory had previously cost Green Ltd $6 000, Leaf Ltd depreciates at a rate of 10% per annum at cost and the item is still on hand at 30 June 2021 Required In relation to the above intragroup transactions, prepare adjusting journal entries for the consolidation worksheet at 30 June 2021. 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