For the following independent transactions,

prepare the necessary consolidation entries for the year ending 30 June 2019:

Assume: P owns 100% of S and tax rate is 30%

(a) On 1 Dec 2018, S sold some inventory to P for $20,000

and recorded a profit of $4,000. P still has 10% of this inventory on hand as at 30 June 2019

and the remaining was sold by P at a profit of $5,000.

(b) On 1 July 2016, P sold an item of Machine to S for $30,000.

P bought this item 2 years ago for $63,000 and depreciating

it on a straight line basis over its useful life of 7 years.

S has been depreciating it over its remaining life since the purchase

(c) On 1 Dec 2017, S leased a warehouse from P @ $10,000 per month.

Rent is payable at the start of each month. S hasn't paid the rent for June 2019.

(d) On 18 Nov 2017, inventory costing $10,000 was sold to P by S.

S recorded a profit of $4,000 on this sale. P sold 50% of this inventory

in June 2018 at a profit of $4,200 and the remaining in May 2019 at a profit of $5,500.

(e) On 1 Jan 2019, P sold an item of machine to S for $3,000 and recorded a loss

of $500. S recognised this item as inventory in it's books and the item remains

unsold at the end of the FY.

(f) On 31 Dec 2016, P sold some to inventory to S for $18,000 and recorded

a profit of $3,000. S recognised this item as equipment in it's books and has been

depreciating it @ 20% p.a. since the purchase.

(g) On 1 May 2018, inventory costing $8,000 was sold for $10,000 by S to P.

P sold 30% of this inventory in June 2018 and 50% in Jan 2019.

Remainder is still on hand at the end of FY19.

(h) On 1 May 2018, inventory costing $8,000 was sold for $10,000 by S to P.

P sold 30% of this inventory in June 2018 and remainder in Jan 2019.