Ron Ltd operates a number of supermarkets with an emphasis on the supply of quality produce.

The operations of Sam Ltd are primarily in the fine fruit market. Believing that the acquisition of Sam Ltd would enable Ron Ltd to expand its supply of quality produce to its customers, Ron Ltd commenced actions to acquire the shares of Sam Ltd. On 1 July 2013, Ron Ltd acquired all the issued shares (cum div.) of Sam Ltd for $123 500. At this date the equity of Sam Ltd consisted of:

Share capital $100 000

Reserves 5 000

Retained earnings 10 000

On 1 July 2013, Sam Ltd had recorded a dividend payable of $6000 and goodwill of $5000(net of accumulated impairment losses of $7000). The dividend was paid in August 2013. In the previous years annual report Sam Ltd had reported the existence of a contingent liability for damages based upon a lawsuit by a customer who had slipped on some fallen fruit in one of the stores operated by Sam Ltd. Ron Ltd calculated that this liability had a fair value of $10 000.

Sam Ltd also had some customer databases that were not recorded as assets but Ron Ltd placed affair value of $6000 on these items. Sam Ltd believed that the databases had a future life of 4 years.

All of the identifiable assets and liabilities of Sam Ltd were recorded at amounts equal to their fair values except for the following:

Carrying amount Fair value

Plant (cost $120 000) $94 000 $96 000

Land 80 000 85 000

Inventory 20 000 24 000

The plant had an expected remaining useful life of 10 years. The land was sold by Sam Ltd in February 2015. The inventory was all sold by 30 June 2014.

In February 2016, Sam Ltd transferred $3000 of the reserves on hand at 1 July 2013 to retained earnings. The remaining $2000 was transferred in February 2017.

The court case involving the damages sought by the customer was settled in May 2017.Sam Ltd was required to pay $7500 to the customer.

Required Prepare the consolidation worksheet entries for the preparation by Sam Ltd of its consolidated financial statements at 30 June 2017.