Question $1$

On $1$ July $2023$ Moon Ltd acquired all of the issued shares of Star Ltd for K $120$

At the date the following items were listed in the statement of financial

position of Star Ltd$.$

At $30$ June $2024,$ the accounts of two companies appear as follows.

Additional information:

$($a$)$ The identifiable net assets of Star Ltd were recorded at fair value at the date of

acquisition.

$($b$)$ Current year goodwill impairment has been estimated to K $1250.$

$($c$)$ The dividend provided for $($at $1$ July $2023)$ was paid on $31$ August $2023.$

$($d$)$ During the year Star Ltd sold goods to Moon Ltd for K $25000.$ The closing

inventory of Moon Ltd includes some items purchased from Star Ltd for K $6000.$

These items has cost Star Ltd K $4000.$

$($e$)$ The opening inventory of Star Ltd includes some items purchased from Moon Ltd

at a profit of K $1200.$ These items were sold to outside parties during the current

year.

$($f$)$ Moon Ltd recognizes dividends when received.

$($g$)$ The tax rate is $30\%.$

Required:

$($i$)$ Prepare consolidation journal entries.

$($ii$)$ Prepare consolidation worksheet.

$($iii$)$ Prepare consolidated income statement for the year ended ${31}^{-J}$ une $2024.$