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On 1 July 2 0 2 1 , Galaxy Ltd , an ultimate parent reporting entity, acquired 3 5 % of the shares of Tadpole

On 1 July 2021, Galaxy Ltd, an ultimate parent reporting entity, acquired 35% of the shares
of Tadpole Ltd. The acquisition resulted in Galaxy Ltd achieving significant influence over
Tadpole Ltd. Equity accounting is applied to the interest held in Tadpole Ltd.
Additional Information
Tadpole Ltd recorded a net profit after tax of $35,000 for the year ended 30 June
2023.
Tadpole Ltd paid a total dividend of $20,000 for the year ended 30 June 2023.
The inventory of Tadpole Ltd at 30 June 2022 included $60,000 of inventory
purchased from Galaxy Ltd. The original cost of that inventory to Galaxy Ltd was
$42,000. Tadpole Ltd sold that entire inventory to external customers during the
financial year that ended 30 June 2023.
During the year ended 30 June 2023, Tadpole sold inventory to Galaxy Ltd. The
inventory cost Tadpole Ltd $40,000 and was sold to Galaxy Ltd for $70,000.20% of
this inventory was still on hand in Galaxy Ltds closing inventory at 30 June 2023.
REQUIRED
In accordance with the requirements of AASB 128 Investment in Associates and Joint
Ventures.
Prepare the equity accounting adjusting journal entries for the Galaxy Ltd 30 June 2023
consolidated financial statements

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