Question 2: Consolidations 2 (25 marks) (a) Aladdin Ltd owns all of the share capital of Genie Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2019 or 30 June 2020. (1) In January 2020, Aladdin Ltd sells inventories to Genie Ltd for $15 000 in cash. These inventories had previously cost Aladdin Ltd $10 000, and remain unsold by Genie Ltd at the end of the period. (3 marks) (ii) In February 2020, Aladdin Ltd sells inventories to Genie Ltd for $17 000 in cash. These inventories had previously cost Aladdin Ltd $12000, and are on-sold externally on 2 April 2020. (2 marks) (iii) In February 2020, Genie Ltd sells inventories to Aladdin Ltd for $22 000 in cash (original cost to Genie Ltd was $16 000) and half are on-sold externally by 30 June 2020. (3 marks) (iv) In March 2020, Aladdin Ltd sold inventories for $10 000 to Zara Ltd, an external entity. These inventories were transferred from Genie Ltd on 1 June 2019. The inventories had originally cost Genie Ltd $6000, and were sold to Aladdin Ltd for $12 000 (2 marks) Required In relation to the above intragroup transactions, prepare adjusting journal entries for the consolidation worksheet at 30 June 2020. Only the adjusting entries need be shown. Answer journal for question 2(a) Use the worksheet below to show your adjusting consolidation journal entries at 30 June 2020, narrations are not required: Date Account Dr Cr