On 1 July 2018, Jane Ltd acquired 100% of the voting shares of John Ltd for $120 000. All the identifiable assets and liabilities of John Ltd were recorded at amounts equal to their fair values. On the same date, Jane Ltd paid $300 000 in cash to acquire 40% of the ordinary shares of Doe Ltd. While this investment did not give Jane Ltd control over Doe Ltd, it allowed Jane Ltd to obtain significant influence over Doe Ltd. All the identifiable assets and liabilities of John Ltd were recorded at amounts equal to their fair values, except for the following: Carrying Amount Fair Value Land $80 000 $90 000 Inventories 12 000 16 000 Machinery (cost $100 000) 82 500 94 000 The machinerys expected remanning useful life was 5 years with benefits being expected evenly over that period. All of the inventories were sold in September 2019. The land was still on hand at 30 June 2021. The following intragroup transactions took place during the periods ended 30 June 2020 and 30 June 2021: a. Jane Ltd provided management services to John Ltd during the period ended 30 June 2021. The total charge for those services was $5,000, half of which was unpaid at 30 June 2021. b. On 20 September 2020, John Ltd sold inventories to Jane Ltd for $15 000 cash, at a mark-up of 25% on cost. At 30 June 2021, none of these inventories were on hand. c. On 15 September 2020, Doe Ltd sold inventories to Jane Ltd for $20 000 on credit, recording a profit of $5 000. At 30 June 2021, 70% of these inventories were sold by Jane Ltd to an external entity. Jane Ltd paid half the amount owed on 10 June 2021 and the rest on 1 August 2021. d. The beginning inventories of Jane Ltd at 1 July 2020 included goods which cost Jane Ltd $2 000. Jane Ltd purchased these inventories from Doe Ltd at cost plus 25% markup. e. On 1 July 2019, Doe Ltd sold a land and a dust extraction machine to Jane Ltd for $100 000 and $40 000 respectively. The carrying amount of the land and the dust extraction machine in Doe Ltds book at the date of sale were $85 000 and $48 000 (cost: $80 000), respectively. Jane Ltd charged depreciation at the rate of 10% p.a while Doe Ltd applied a 20% depreciation rate to the machinery. The dust extraction machine was still on hand with Jane Ltd at 30 June 2021. f. On 1 January 2021, Doe Ltd sold a sonic scanner to Jane Ltd for $80 000. This machinery was originally bought by Doe Ltd on 1 July 2019 for $90 000 with 7.5 years of useful life. Jane Ltd expects to consume the benefits of the machinery evenly over its useful life. a. Doe Ltd declared dividends totalling $40,000 during the current period ended 30 June 2021. These dividends were declared out of post-acquisition profits. b. The tax rate is 30%. Required: 1. Assume Jane Ltd does not prepare consolidated financial statements, prepare the journal entries in the records of Jane Ltd for the year ended 30 June 2021 in relation to its investment in the associate, Doe Ltd.

2. Prepare consolidation worksheet entries needed for the consolidated statements for the year ended 30 June 2021 for Jane Ltd and its subsidiary John Ltd. Include the equity accounted results of Doe Ltd.

3. Complete the consolidation worksheet for Jane Ltds group for the year ended 30 June 2021

. 4. In the consolidated statement of financial position at 30 June 2021, what would be carrying an amount of the Investment in Associates account?

ane Ltd John Ltd Sales Revenue Cost of goods sold Gross Profit Other revenues Gains Depreciation expense Finance costs Other expenses Share of Profits/Losses from Associates Profit before income tax Income tax expense Profit for the year Retained earnings 1.7.2020 Dividend paid Retained Earnings 30.6.2021 Share Capital General Reserve Total Equity Trade payables Other current liabilities Deferred Tax Liabilities Provisions Total Liabilities Total Equity and Liabilities Assets Cash at bank Trade receivables Inventories Investment in John Ltd Investment in Associates Land Plant and machinery Accumulated depreciation - plant and machinery Deferred Tax Assets Total Assets 506,250379,500 312,500 164,450 193,750 215,050 18,975 15,180 60,720 34,155 9,488 15,000 17,500 67,500 32,500 6,250 120,000 70,000 144,843 5,313 50,000 139,530 144,000 160,300 194,000299,830 50,000 3,000 64,000 352,830 159,816 132,825 37,030 98,800 900,000 428,471 1,464,000 781,300 360,000 10,000 235,625 378,750 60,625 225,000 255,875 271,816 68,598 23,656 72,500 88,750 120,000 300,000 267,500 166,405 00,000 347,484 150,000 102,350 5,693 1,464,000781,300 9,375 ane Ltd John Ltd Sales Revenue Cost of goods sold Gross Profit Other revenues Gains Depreciation expense Finance costs Other expenses Share of Profits/Losses from Associates Profit before income tax Income tax expense Profit for the year Retained earnings 1.7.2020 Dividend paid Retained Earnings 30.6.2021 Share Capital General Reserve Total Equity Trade payables Other current liabilities Deferred Tax Liabilities Provisions Total Liabilities Total Equity and Liabilities Assets Cash at bank Trade receivables Inventories Investment in John Ltd Investment in Associates Land Plant and machinery Accumulated depreciation - plant and machinery Deferred Tax Assets Total Assets 506,250379,500 312,500 164,450 193,750 215,050 18,975 15,180 60,720 34,155 9,488 15,000 17,500 67,500 32,500 6,250 120,000 70,000 144,843 5,313 50,000 139,530 144,000 160,300 194,000299,830 50,000 3,000 64,000 352,830 159,816 132,825 37,030 98,800 900,000 428,471 1,464,000 781,300 360,000 10,000 235,625 378,750 60,625 225,000 255,875 271,816 68,598 23,656 72,500 88,750 120,000 300,000 267,500 166,405 00,000 347,484 150,000 102,350 5,693 1,464,000781,300 9,375