On 1 July 2018, G Ltd acquired 80% of the ordinary share capital of H Ltd. There are no

preference shares. The retained earnings of H Ltd on 1 July 2018 were $2,000. Statements

of comprehensive income for the year to 30 June 2022 are as follows:

	G Ltd	H Ltd
	$	$
Sales Revenue	748,800	130,800
Cost of Sales	(320,880)	(78,360)
Gross Profit	427,920	52,440
Distribution Costs	(85,644)	(6,120)
Administrative Expenses	(121,716)	(12,600)
Operating Profit	220,560	33,720
Dividends received from H Ltd.	16,800	-
Profit before tax	237,360	-
Taxation	(45,840)	(6,720)
Profit for the year	191,520	27,000

The following figures are taken from the retained earnings column of the statement of

changes in equity of G Ltd and H Ltd for the year to 30 June 2022:

	G Ltd	H Ltd
	$	$
Balance at start of year	65,880	8,400
Profit for the year	191,520	27,000
Dividends	(144,000)	(24,000)
Balance at end of year	113,400	11,400

The following information is also available:

During the year, G Ltd sold goods to H Ltd for $12,000. These goods had cost G Ltd

$7,000. At the year end, one-half of the goods were still held by H Ltd.

Required:

1. Prepare a consolidated statement of comprehensive income for the year to June 30, 2022.

2. Prepare an extract from the consolidated statement of changes in equity for the year to June 30, 2022. (Show workings for the Opening Balance)