On 1 July 2015, Brad Ltd acquired all the issued shares of Ella Ltd. The following information relates to the inter entity transactions that have occurred between Brad and Ella to June 2017.

Inter entity Transactions

(a) Brad Ltd sells certain raw materials to Ella Ltd to be used in its manufacturing process.

At 1 July 2016, Ella Ltd held inventory sold to it by Brad Ltd in the previous year at a profit of $600.

(b) During the 201617 year, Brad Ltd sold inventory to Ella Ltd for $45 000. None of this was on hand at 30 June 2017.

(c) Ella Ltd also sells items of inventory to Brad Ltd. During the 201617 year, Ella Ltd sold goods to Brad Ltd for $4500. The inventory had cost Ella Ltd $3500. At 30 June 2017 50% of this was still on hand in Brad Ltds inventory.

(d) On 1 July 2016, Ella Ltd sold an item of plant to Brad Ltd for $15 000. This plant had a

carrying amount in the records of Ella Ltd of $14 000 at time of sale. This type of plant is

depreciated at 10% p.a. on cost.

(e) On 1 January 2016, Brad Ltd sold an item of inventory to Ella Ltd for $18 000. The

inventory had cost Brad Ltd $16 000. This item was classified by Ella Ltd as plant. Plant of this type is depreciated by Ella Ltd at 20% p.a.

(f) On 1 March 2017, Ella Ltd sold an item of plant to Brad Ltd. Whereas Ella Ltd classified this as plant, Brad Ltd classified it as inventory. The sales price was $9000 which included a profit to Ella Ltd of $1500. Brad Ltd sold this to another entity on 31 March for $9900.

(g) During the 2016-17 year Brad Ltd provided management services to Ella Ltd at a cost of $8000

(h) On March 1^st 2017 Ella Ltd paid a dividend of $3000 to Brad Ltd.

(g) The tax rate is 30%.

Required:

Prepare consolidation journal entries required at June 30 2017 to eliminate the effects of inter entity transactions between Brad Ltd and Ella Ltd. Note: BCVR and preacquisition entries are NOT required for this question.