Sam Ltd owns all the share capital of Ruth Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2021 or 30 June 2022.

1. Ruth Ltd manufactures items of machinery which are used as property, plant and equipment by other companies, including Sam Ltd. Ruth Ltd sold such an item to Sam Ltd for $70 000 on 1 January 2021, its cost to Ruth Ltd being only $63 000 to manufacture. Sam Ltd charges depreciation on these machines at 15% p.a. on the diminishing value.

2. Sam Ltd sold a delivery truck to Ruth Ltd for $20 000 on 1 July 2020. The delivery truck had a carrying amount to Sam Ltd of $16 000. Both entities depreciate vehicles at a rate of 12% p.a. on cost.

3. Sam Ltd manufactures items of inventories which it then markets through Ruth Ltd. Sam Ltd sold for $15 000 items of inventory to Ruth Ltd at cost plus 20% during the period ended 30 June 2022. Ruth Ltd has sold to external entities two third of these transferred inventory items by 30 June 2022.

4. Ruth Ltd rented a spare warehouse from Sam Ltd for $65 000 p.a. The rental contract started at 1 January 2021 and ends on 31 December 2022. The payments are made annually in advance on 1 January.

Required

In relation to the above intragroup transactions:

Prepare adjusting journal entries for the consolidation worksheet on 30 June 2021 and 30 June 2022.