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Natlix Ltd acquired 1 0 0 % of the issued ordinary shares of Igloo Ltd on 1 July 2 0 2 0 for a cash
Natlix Ltd acquired of the issued ordinary shares of Igloo Ltd on July for a cash consideration amounting to $
At the date of acquisition, July the net assets of Igloo Ltd comprised:
Paid up Ordinary Capital $
Retained Earnings $
During the year ending June the following transactions occurred between Natlix Ltd and Igloo Ltd:
On July Igloo Ltd sold surplus equipment to Natlix Ltd for $ The equipment had cost Igloo Ltd $ and was years old with accumulated depreciation amounting to
$ at the time of sale. The remaining useful life of the machinery as at July is four years.
Natlix Ltd purchased $ worth of inventory from Igloo Ltd As at June Natlix Ltd held of this stock on hand. The cost price of the total inventory sold in the books of Igloo Ltd was $
Igloo Ltd also purchased inventory from Natlix Ltd for $ As at June of this inventory had been sold by Igloo Ltd The cost of the goods sold in total for Natlix Ltd was $
On June Igloo Ltd declared but has not yet paid a final dividend amounting to $
Interest of $ incurred to June on a loan payable to Natlix Ltd was paid by Igloo Ltd during the year. The balance of the loan outstanding as at June was $
Additional Information
Assume the company tax rate is
Round each calculation to the nearest whole dollar.
Both companies adopt the perpetual method of accounting for inventory.
Required
Prepare all consolidation journal entries as required for the year ending June Show all relevant calculations.
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