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On 1 July 2017, Ukulele Ltd acquired 40% of the shares of Bongo Ltd for $99,600. At this date, all the identifiable assets and liabilities

On 1 July 2017, Ukulele Ltd acquired 40% of the shares of Bongo Ltd for $99,600. At this date, all the identifiable assets and liabilities of Bongo Ltd were recorded at amounts equal to fair value except for inventory which had a fair value $9,900 greater than the carrying amount. All inventory was sold by 30 June 2018. The tax rate is 30%. Bongo Ltd was classified as an associate of Ukulele Ltd.

The profits and losses recorded by Bongo Ltd from the next 6 years were as follows:

201718

$30,000

201819

5,100

201920

(250,000)

202021

(49,900)

202122

15,100

202223

19,900

Required Prepare the journal entries for the consolidation worksheet of Ukulele Ltd for the equity accounting of Bongo Ltd in each of the years from 201723.

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