Question 23.9Investor prepares consolidated financial statements, multiple periods

LO4,5On 1 July 2014, Harp Ltd purchased 30% of the shares of Lyre Ltd for $60 050. At this date, the ledger balances of Lyre Ltd were:

Capital	$150 000	Assets	$225 000
Other reserves	30 000	Less:Liabilities	(30 000)
Retained earnings	15 000
	$195 000		$195 000

At 1 July 2014, all the identifiable assets and liabilities of Lyre Ltd were recorded at fair value except for plant whose fair value was $5000 greater than carrying amount. This plant has an expected future life of 5 years, the benefits being received evenly over this period. Dividend revenue is recognised when dividends are declared. The tax rate is 30%.

The results of Lyre Ltd for the next 3 years were:

Profit/(loss) before income tax	$50 000	$40 000	$(5 000)
Income tax expense	(20 000)	(20 000)
Profit/(loss)	30 000	20 000	(5 000)
Dividend paid	15 000	5 000	2 000
Dividend declared	10 000	5 000	1 000

Required

Prepare, in journal entry format, for the years ending 30 June 2015, 2016 and 2017, the consolidation worksheet adjustments to include the equity-accounted results for the associate, Lyre Ltd, in the consolidated financial statements of Harp Ltd.