Fred Ltd owns all of the share capital of Wilma Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2022 and 30 June 2023.

(i)On 10 June 2022, Fred Ltd sold inventories to Wilma Ltd for $18 000 in cash. The inventories had previously cost Fred Ltd $14 000. Half of these inventories were unsold by Wilma Ltd at 30 June 2022 and 30% at 30 June 2023.

(ii)On 1 July 2021, Fred Ltd sold equipment costing $10 000 to Wilma Ltd for $12 000. Fred Ltd had not charged any depreciation on the asset before the sale as it just purchased it from an external entity. Both entities depreciate items of equipment at 10% p.a. on cost. The equipment is still held by Wilma Ltd at 30 June 2023. Neither entity uses a Gain on Sale account.

Required

In relation to the above intragroup transactions, prepare the adjusting journal entries for the consolidation worksheet at 30 June 2022 and 30 June 2013. Only the adjusting entries need be shown.