Question on Consolidation

Natlix Ltd acquired $100\%$ of the issued ordinary shares of Igloo Ltd on $1$ July $2020$ for a cash consideration amounting to $$1370000.$

At the date of acquisition, $1$ July $2020,$ the net assets of Igloo Ltd comprised:

Paid up Ordinary Capital $$1020000$

Retained Earnings $$385000$

During the year ending $30$ June $2021,$ the following transactions occurred between Natlix Ltd and Igloo Ltd:

$$ On $1$ July $2020,$ Igloo Ltd sold surplus equipment to Natlix Ltd for $$61440.$ The equipment had cost Igloo Ltd $$102400$ and was $5$ years old with accumulated depreciation amounting to

$$43200$ at the time of sale. The remaining useful life of the machinery as at $1$ July $2020$ is four years.

$$ Natlix Ltd purchased $$48400$ worth of inventory from Igloo Ltd$.$ As at $30$ June $2021,$ Natlix Ltd held $25\%$ of this stock on hand. The cost price of the total inventory sold in the books of Igloo Ltd was $$12500.$

$$ Igloo Ltd also purchased inventory from Natlix Ltd for $$6400.$ As at $30$ June $2021,40\%$ of this inventory had been sold by Igloo Ltd$.$ The cost of the goods sold in total for Natlix Ltd was $$2560.$

$$ On $30$ June $2021,$ Igloo Ltd declared $($but has not yet paid$)$ a final dividend amounting to $$7600.$

$$ Interest of $$800$ incurred to $30$ June $2021$ on a loan payable to Natlix Ltd was paid by Igloo Ltd during the year. The balance of the loan outstanding as at $30$ June $2021$ was $$2400.$

Additional Information

$$ Assume the company tax rate is $30\%.$

$$ Round each calculation to the nearest whole dollar.

$$ Both companies adopt the perpetual method of accounting for inventory.

Required

Prepare all consolidation journal entries as required for the year ending $30$ June $2021.$ Show all relevant calculations.Question on Consolidation

Natlix Ltd acquired $100\%$ of the issued ordinary shares of Igloo Ltd on $1$ July $2020$ for a cash consideration amounting to $$1370000.$

At the date of acquisition, $1$ July $2020,$ the net assets of Igloo Ltd comprised:

Paid up Ordinary Capital $$1020000$

Retained Earnings $$385000$

During the year ending $30$ June $2021,$ the following transactions occurred between Natlix Ltd and Igloo Ltd:

$$ On $1$ July $2020,$ Igloo Ltd sold surplus equipment to Natlix Ltd for $$61440.$ The equipment had cost Igloo Ltd $$102400$ and was $5$ years old with accumulated depreciation amounting to

$$43200$ at the time of sale. The remaining useful life of the machinery as at $1$ July $2020$ is four years.

$$ Natlix Ltd purchased $$48400$ worth of inventory from Igloo Ltd$.$ As at $30$ June $2021,$ Natlix Ltd held $25\%$ of this stock on hand. The cost price of the total inventory sold in the books of Igloo Ltd was $$12500.$

$$ Igloo Ltd also purchased inventory from Natlix Ltd for $$6400.$ As at $30$ June $2021,40\%$ of this inventory had been sold by Igloo Ltd$.$ The cost of the goods sold in total for Natlix Ltd was $$2560.$

$$ On $30$ June $2021,$ Igloo Ltd declared $($but has not yet paid$)$ a final dividend amounting to $$7600.$

$$ Interest of $$800$ incurred to $30$ June $2021$ on a loan payable to Natlix Ltd was paid by Igloo Ltd during the year. The balance of the loan outstanding as at $30$ June $2021$ was $$2400.$

Additional Information

$$ Assume the company tax rate is $30\%.$

$$ Round each calculation to the nearest whole dollar.

$$ Both companies adopt the perpetual method of accounting for inventory.

Required

Prepare all consolidation journal entries as required for the year ending $30$ June $2021.$ Show all relevant calculations.