The following financial statements of Joel Limited and its subsidiary Parko Limited have been extracted from the financial records at 30 June 2019: Income Statement Joel Ltd Parko Ltd Sales Revenue $671 400 $540 000 Cost of Goods Sold (464 000) (238 000) Gross Profit 207 400 302 000 Dividends Received from Parko Ltd 93 000 Management Fee Revenue 26 500 Gain on Sale of Plant 40 000 35 000 Expenses Administrative Expenses (30 800) (38 700) Depreciation (29 500) (56 800) Management Fee Expense - (26 500) Other Expenses (101 100) (72 000) Profit Before Tax 205 500 143 000 Tax Expense (61 500) (42 200) Profit for the Year 144 000 100 800 Page 12 of 15

Retained Earnings 30 June 2018 319 400 239 200 463 400 340 000 Dividends Paid (137 400) (93 000) Retained Earnings 30 June 2019 $326 000 $247 000 Balance Sheet Eagle Ltd Pigeon Ltd Shareholders Equity Retained Earnings $326 000 $247 000 Share Capital 350 000 200 000 Current Liabilities Accounts Payable 54 700 46 300 Tax Payable 41 300 25 000 Non-Current Liabilities Loans 173 500 116 000 Total Equities $945 500 $634 300 Current Assets Accounts Receivable 59 400 62 300 Inventory 92 000 29 000 Non-Current Assets Land and Buildings 224 000 326 000 Plant at Cost 299 850 355 800 Accumulated Depreciation (85 750) (138 800) Investment in Parko Ltd 356 000 - Total Assets $945 500 $634 300 Other Information: i) Joel Limited acquired its 100 percent interest in Parko Limited on 1 July 2015. At that date the Equity of Parko Limited was as follows: Share Capital $200 000 Retained Earnings $180 000 $380 000 ii) At the date of acquisition, all assets were considered to be fairly valued. iii) During the year Parko Limited sold $50 000 of inventory to Joel Limited. The closing inventory in Joel Limited includes inventory acquired from Parko Limited at a cost of $33,000. This cost Parko Limited $28,000 to produce. iv) The opening inventory in Joel Limited as at 1 July 2018 included inventory acquired from Parko Limited for $ 30,000 that cost Joel Limited $20,000 to produce. v) On 1 July 2018, Parko Limited sold an item of plant to Joel Limited for $116,000 when its carrying value in Parko Limiteds accounts was $81,000 (cost $135,000, accumulated depreciation $54,000). This plant is assessed as having a remaining useful life of six years. The group uses the straight-line method of depreciation. Page 13 of 15

vi) Parko Limited paid $26,500 in management fees to Joel Limited. vii) The tax rate is 30 per cent. Required: a) Using the above information, prepare the consolidation journal adjustments required for the year ended 30 June 2019. b) Prepare the Consolidated Balance Sheet as at 30 June 2019. (Show all workings.) The Consolidated Income Statement is not required