n 1 July 2019, Xavier Ltd acquired a 25% interest in Logan Ltd for a cash consideration of $180 000. The share capital and reserves of Logan Ltd at the date of acquisition are:

Share capital	$300 000
Retained earnings	$385 000
Total shareholders equity	$685 000

Additional information:

For the year ending 30 June 2020, Logan Ltd records an after-tax profit of $80 000. A dividend of $20,000 is declared on 30 June 2020 but is not paid until 31 August 2020.

For the year ending 30 June 2021, Logan Ltd records an after-tax profit of $200 000. A dividend of $90,000 is declared on 15 June 2021 but remains unpaid as at 30 June 2021.

For the year ending 30 June 2022, Logan Ltd records a loss of $500 000 and no dividend is declared.

Xavier Ltd has no subsidiaries and the tax rate is 30%.

Required:

1. Prepare the journal entries required for Xavier Ltd to account for its associate for the year ending 30 June 2021 using the equity method.