On 1 July 2016, Bongo Ltd acquired 30% of the shares of Tom-Tom Ltd for$60000.At this date, the equity of Tom-Tom Ltd consisted of:

Share capital (100 000 shares) $100 000

Asset revaluation surplus 50 000

Retained earnings 20 000

On 1 July 2018, the ownership interest of 30%, together with board representation and a diverse spread of remaining shareholders, was sufficient for the investor to demonstrate significant influence, and accordingly to begin accounting for the investment as an associate. The fair value of the 30% ownership interest in Tom-Tom Ltd at 1 July 2018 was $70000. At this date, the equity of Tom-Tom Ltd consisted of:

Share capital (100 000 shares) $100 000

Asset revaluation surplus 60 000

General reserve 10 000

Retained earnings 40 000

At this date, all the identifiable assets and liabilities of Tom-Tom Ltd were recorded at fair value except for the following assets:

Carrying amount Fair value

Machinery $20 000 $25 000

Inventory $10 000 12 000

The machinery was expected to have a further 5-year life, benefits being received evenly over this period. The inventory was all sold by 30 June 2019.

Dividends paid by Tom-Tom Ltd in the 2016-17 period were $10000, and $12000 was paid in the 2017-18 period. In June 2018, Tom-Tom Ltd declared a dividend of $10000. Dividend revenue is recognised when dividends are declared.

During the period ending 30 June 2019, the following events occurred.

(a)Tom-Tom Ltd sold to Bongo Ltd some inventory, which had previously cost Tom-Tom Ltd $8000, for $10000. Bongo Ltd still had one-quarter of these items on hand at 30 June 2019.

(b)On 1 January 2019, Bongo Ltd sold a non-current asset to Tom-Tom Ltd for $50000, giving a profit before tax of $10000 to Bongo Ltd. Tom-Tom Ltd applied a 12% p.a. on cost straight-line depreciation method to this asset.

(c)On 31 December 2018, Tom-Tom Ltd paid an interim dividend of $5000.

(d)At 30 June 2019, Tom-Tom Ltd calculated that it had earned a profit of $32000, after an income tax expense of $8000. Tom-Tom Ltd then declared a $5000 dividend, to be paid in September 2019, and transferred $3000 to the general reserve.

(e)The tax rate is 30%.

Required

Prepare the journal entries for the consolidation worksheet of Bongo Ltd at 30 June 2019 for the inclusion of the equity-accounted results of Tom-Tom Ltd.