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:

	Jonathan Ltd		Thomas Ltd
Revenues	90,000.00	64,000.00
Expenses	34,000.00	42,000.00
Trading Profit	56,000.00	22,000.00
Gain (losses) on Sale of Non-Current Assets	8,000.00	8,000.00
Profit before Tax	64,000.00	30,000.00
Income Tax Expense	12,000.00	5,000.00
Profit for the Period	52,000.00	25,000.00
Retained Earnings (1/7/21)	103,000.00	55,000.00
Transfer from General Reserve	30,000.00	15,000.00
	185,000.00	95,000.00
Dividend Paid	20,000.00	-
Retained Earnings (30/6/22)	165,000.00	95,000.00
Share Capital	150,000.00	130,000.00
General Reserve	10,000.00	20,000.00
Other Components of Equity	25,000.00	18,000.00
Total Equity	350,000.00	263,000.00
Accounts Payable	40,000.00	10,000.00
Deferred Tax Liability	18,000.00	10,000.00
Other Non-Current Liabilities	250,000.00	2,300,000.00
Total Liabilities	308,000.00	2,500,000.00
Total Equity and Liabilities	658,000.00	513,000.00
Plant	430,000.00	320,000.00
Accumulated Depreciation - Plant	- 182,000.00	- 220,000.00
Land	150,000.00	20,000.00
Brands	80,000.00	-
Shares in Thomas Ltd	246,000.00
Financial Assets	110,000.00	107,000.00
Cash	10,000.00	5,000.00
Inventories	40,000.00	30,000.00
Goodwill	20,000.00	18,000.00
Accumulated Impairment Loss	-	- 13,000.00
Total Assets	658,000.00	513,000.00

1. Complete the consolidated worksheet for 30 June 2022

	Jonathan Ltd	Thomas Ltd		Adjustments			Group
				Dr	Cr
Revenues	90 000	64 000
Expenses	34 000	42 000
Trading profit	56 000	22 000
Gains (losses) on sale of non-current assets	8 000	8 000
Profit before tax	64 000	30 000
Income tax expense	12 000	5 000
Profit	52 000	25 000
Retained earnings (1/7/21)	103 000	55 000
Transfer from BCVR	0	0
Transfer from general reserve	30 000	15 000
	185 000	95 000
Dividend paid	20 000	0
Retained earnings (30/6/22)	165 000	95 000
Share capital	150 000	130 000
General reserve	10 000	20 000
BCVR	0	0
	325 000	245 000
Other components of equity (1/7/21)	30 000	15 000
Increases/Decreases	5 000	3 000
Other components of equity (30/6/22)	35 000	18 000
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 impairment losses	0	(13 000)
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