Melbourne Ltd owns 100% the share capital of Portland Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2020 or 30 June 2021.

1. On 1 May 2020, Melbourne Ltd sold inventories to Portland Ltd for $5 000 in cash, recording a profit of $1000. On 15 June 2020, Portland Ltd sold half of those inventories to an external entity for $3 000. Therefore, half of the inventories were unsold by Portland Ltd at 30 June 2020. On 31 January 2021, Portland Ltd sold the remaining inventories to an external entity for $3 000. Therefore, none of these inventories were on hand at 30 June 2021.

(b) On 1 January 2021, Portland Ltd sold inventories costing $5000 to Melbourne Ltd at a transfer price of $8000, paid in cash. The entire inventories were sold by Melbourne Ltd to external entities by 30 June 2021.

Required

In relation to the above intragroup transactions prepare adjusting journal entries for the consolidation worksheet at 30 June 2020 and 30 June 2021 (narrations are required).