Papaya Limited acquired 70% of the issued shares of Soursop Limited for $20,000,000 on 1 January 2016 The shareholders' equity of Soursop Limited on 1 January 2016 were as follows: $18,000,000 $7,000,000 $25,000,000 Issued share capital Retained profits Additional information: At the date of acquisition, the carrying amounts of all identifiable asset and liabilities of Soursop Limited were equal to their fair value, except for a piece of land and a piece of equipment owned by Soursop Limited. The fair value of the equipment was $300,000 in excess of its carrying amount. Soursop Limited used the historical cost model for its non-current assets. The equipment had a remaining useful life of 6 years. This revaluation was not reflected in the books of Soursop Limited. a For the purpose of acquisition, a piece of land of Soursop Limited was revalued to give a valuation of $200,000 in excess of its carrying value. However, this valuation had not been reflected in the books of Soursop Limited at 31 December 2018. It was the group policy not to charge depreciation on land. b c On January 2018, a motor van owned by Papaya Limited was sold to Soursop Limited. The information about the sales was as follows: $400,000 Selling price Original cost in the books of Papaya Limited Accumulated depreciation in the books of Papaya Limited $500,000 S300,000 Remaining useful life for Soursop Limited at transaction date 5 years The depreciation expense was included in other operating expenses d The difference in current account between Papaya Limited and Soursop Limited was caused by cash in transit. During 2018, Soursop Limited sold goods to Papaya Limited. The information about the sales was as follows: e Selling price of the goods Cost plus a mark-up percentage Value of unsold goo ds in the books of Papaya Limited at year end $200,000 $600,000 25% f Soursop Limited paid dividends of S200,000 on 30 November 2018 g Papaya Limited has a policy of accounting for non-controlling interest at net asset approach Both Papaya Limited and Soursop Limited depreciated their non current assets on a straight-line basis. h Consolidated goodwill was not impaired at 31 December 2018 Required: Prepare the consolidated journal entries (with narratives) to arrive at the opening consolidated financial statements at 1 January 2018 and for the year ended 31 December 2018 a Papaya Limited acquired 70% of the issued shares of Soursop Limited for $20,000,000 on 1 January 2016 The shareholders' equity of Soursop Limited on 1 January 2016 were as follows: $18,000,000 $7,000,000 $25,000,000 Issued share capital Retained profits Additional information: At the date of acquisition, the carrying amounts of all identifiable asset and liabilities of Soursop Limited were equal to their fair value, except for a piece of land and a piece of equipment owned by Soursop Limited. The fair value of the equipment was $300,000 in excess of its carrying amount. Soursop Limited used the historical cost model for its non-current assets. The equipment had a remaining useful life of 6 years. This revaluation was not reflected in the books of Soursop Limited. a For the purpose of acquisition, a piece of land of Soursop Limited was revalued to give a valuation of $200,000 in excess of its carrying value. However, this valuation had not been reflected in the books of Soursop Limited at 31 December 2018. It was the group policy not to charge depreciation on land. b c On January 2018, a motor van owned by Papaya Limited was sold to Soursop Limited. The information about the sales was as follows: $400,000 Selling price Original cost in the books of Papaya Limited Accumulated depreciation in the books of Papaya Limited $500,000 S300,000 Remaining useful life for Soursop Limited at transaction date 5 years The depreciation expense was included in other operating expenses d The difference in current account between Papaya Limited and Soursop Limited was caused by cash in transit. During 2018, Soursop Limited sold goods to Papaya Limited. The information about the sales was as follows: e Selling price of the goods Cost plus a mark-up percentage Value of unsold goo ds in the books of Papaya Limited at year end $200,000 $600,000 25% f Soursop Limited paid dividends of S200,000 on 30 November 2018 g Papaya Limited has a policy of accounting for non-controlling interest at net asset approach Both Papaya Limited and Soursop Limited depreciated their non current assets on a straight-line basis. h Consolidated goodwill was not impaired at 31 December 2018 Required: Prepare the consolidated journal entries (with narratives) to arrive at the opening consolidated financial statements at 1 January 2018 and for the year ended 31 December 2018 a