Jonathan Ltd acquired all the issued shares (ex-div.) of Thomas Ltd on 1 July 2020 for $246??000. At this date the equity of Thomas Ltd consisted of

: Share capital $ 130??000

General reserve 50??000

Retained earnings 40??500 At the acquisition date all the identifiable assets and liabilities of Thomas Ltd consisted of:

Carrying amount Fair value

Plant (cost $230??000) $ 200??000 $ 210??000

Land 100??000 120??000

Inventories 30??000 38??000

The inventories were all sold by 30 June 2020. The land was sold on 1 February 2021 for $150??000. The plant was considered to have a further 5-year life. The plant was sold for $155??000 on 1 January 2022. Also, at acquisition date Thomas Ltd had recorded a dividend payable of $7000 and goodwill (net of accumulated impairment losses of $13??000) of $5000. Thomas Ltd had not recorded some internally generated brands that Jonathan Ltd considered to have a fair value of $12??000. The brand was considered to have an indefinite life. Also not recorded by Thomas Ltd was a contingent liability relating to a current court case in which Thomas Ltd was involved and a supplier was seeking compensation. Jonathan Ltd placed a fair value of $15??000 on this liability. This court case was settled in May 2022 at which time Thomas Ltd was required to pay damages of $16??000.

In February 2021, Thomas Ltd transferred $20??000 from the general reserve on hand at 1 July 2020 to retained earnings. A further $15??000 was transferred in February 2022. Both companies have an equity account entitled 'Other components of equity' to which certain gains and losses from financial assets are taken. At 1 July 2021, the balances of these accounts were $30??000 (Jonathan Ltd) and $15??000 (Thomas Ltd). The financial statements of the two companies at 30 June 2022 contained the following information:

required: Complete the consolidated worksheet for 30 June 2022

For assignment , students use the consolidation worksheet below for part c of your assignment. Fill in adjustments and Group columns and number your journals. Jonathan Thomas Adjustments Group Ltd Ltd Dr Cr Revenues 90 000 64 000 Expenses 34 000 42 000 Trading profit 56 000 22 000 Gains (losses) on sale 8 000 8 000 of non-current assets Profit before tax 64 000 30 000 Income tax expense 12 000 5 000 Profit 52 000 25 000 Retained earnings 103 000 55 000 (1/7/21) Transfer from BCVR 0 Transfer from general 30 000 15 000 reserve 185 000 95 000 Dividend paid 20 000 0 Retained earnings 165 000 95 000 (30/6/22 Share capital 150 000 130 000 General reserve 10 000 20 000 BCVR 0 0 325 000 245 000 Other components of 30 000 15 000 equity (1/7/21) Increases/Decreases 5 000 3 000 Other components of 35 000 18 000 equity (30/6/22) Total equity 360 000 263 000 Accounts payable 30 000 10 000 Deferred tax liability 18 000 10 000 Other liabilities 250 000 230 000 658 000 513 000 Goodwill 20 000 18 000 Accumulated 0 (13 000) impairment losses Inventory 40 000 30 000 Cash 10 000 5 000 Financial assets 110 000 207 000 Shares in Francis Ltd 246 000 0 Land 20 000 20 000 Brands 80 000 0 Plant 314 000 466 000 Accum depreciation (182 000) (220 000) 658 000 513 000