Question 3 - 20 marks Pujara Ltd owns all the share capital of Smooth Ltd. The...

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Question 3 - 20 marks Pujara Ltd owns all the share capital of Smooth Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2019 or 30 June 2020. (a) On 1 May 2019, Pujara Ltd sold inventories to Smooth Ltd for $50,000 on credit, recording a profit of $10,000. Half of the inventories were unsold by Smooth Ltd at 30 June 2019 and none at 30 June 2020. Smooth Ltd paid half of the amount owed on 15 June 2019 and the balance on 15 August 2019. (b) On 10 June 2019, Smooth Ltd sold inventories to Pujara Ltd for $30,000 in cash. The inventories had previously cost Smooth Ltd $24,000. Half of these inventories were unsold by Pujara Ltd at 30 June 2019 and 30% at 30 June 2020. (c) On 1 January 2020, Smooth Ltd sold inventories costing $6,000 to Pujara Ltd at a transfer price of $9,000, paid in cash. The entire inventories were sold by Pujara Ltd to external entities by 30 June 2020. Required In relation to the above intragroup transactions, prepare adjusting journal entries for the consolidation worksheet at 30 June 2019 and 30 June 2020. Question 3 - 20 marks Pujara Ltd owns all the share capital of Smooth Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2019 or 30 June 2020. (a) On 1 May 2019, Pujara Ltd sold inventories to Smooth Ltd for $50,000 on credit, recording a profit of $10,000. Half of the inventories were unsold by Smooth Ltd at 30 June 2019 and none at 30 June 2020. Smooth Ltd paid half of the amount owed on 15 June 2019 and the balance on 15 August 2019. (b) On 10 June 2019, Smooth Ltd sold inventories to Pujara Ltd for $30,000 in cash. The inventories had previously cost Smooth Ltd $24,000. Half of these inventories were unsold by Pujara Ltd at 30 June 2019 and 30% at 30 June 2020. (c) On 1 January 2020, Smooth Ltd sold inventories costing $6,000 to Pujara Ltd at a transfer price of $9,000, paid in cash. The entire inventories were sold by Pujara Ltd to external entities by 30 June 2020. Required In relation to the above intragroup transactions, prepare adjusting journal entries for the consolidation worksheet at 30 June 2019 and 30 June 2020.