The following financial statements of Tom Ltd and its subsidiary Jerry Ltd have been extracted from their financial records at 30 June 2020 Tom Ltd ($000) Jerry Ltd ($000) Reconciliation of operating profit and closing retained earnings Sales revenue 671 4 540 Cost of goods sold (464) (238) Gross profit 207 4 302 Dividends received from Jerry Ltd 93 Management fee revenue 26 5 Gain on sale of plant 40 35 Expenses Administrative expenses (30 8) (38 7) Depreciation (29 5) (56 8) Management fee expense (26 5) Other expenses (101 1) (72) Profit before tax 205 5 143 Tax expense (61 5) (42 2) Profit for the year 144 100 8 Retained earnings 30 June 2019 319 4 239 2 463 4 340 Dividends paid (137 4) (93) Retained earnings 30 June 2020 326 247 Tom Ltd ($000) Jerry Ltd ($000) Statement of financial position Shareholders equity Retained earnings 326 247 Share capital 350 200 Current liabilities Accounts payable 54 7 46 3 Tax payable 41 3 25 Non current liabilities Loans 173 5 116 945 5 634 3 Current assets Accounts receivable 59 4 62 3 Inventory 92 29 Non current assets Land and Buildings 224 326 Plant at cost 299 85 355 8 Accumulated depreciation (85 75) (138 8) Investment in Jerry Ltd 356 945 5 634 3 Other information Tom Ltd acquired its 100 per cent interest in Jerry Ltd on 1 July 2015, that is, five years earlier At that date the capital and reserves of Jerry Ltd were Share capital $200,000 Retained earnings 180,000 $380,000 At the date of acquisition all assets were considered to be fairly valued During the year Tom Ltd made total sales to Jerry Ltd of $60,000 The closing inventory in Tom Ltd includes inventory acquired from Jerry Ltd at a cost of $33,000 This cost Jerry Ltd $28,000 to produce Jerry Ltd sold $50,000 in inventory to Tom Ltd The closing inventory of Jerry Ltd includes inventory acquired from Tom Ltd at a cost of $12,000 This cost Tom Ltd $10,000 to produce The opening inventory in Tom Ltd as at 1 July 2019 included inventory acquired from Jerry Ltd for $40,000 that cost Jerry Ltd $30,000 to produce On 1 July 2019 Jerry Ltd sold an item of plant to Tom Ltd for $116,000 when its carrying value in Jerry Ltds 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 has a policy of measuring its property, plant and equipment using the cost model The group uses the straight line method of depreciation Jerry Ltd paid $26,500 in management fees to Tom Ltd The tax rate is 30 per cent Required Prepare the consolidation journal entries for Tom Ltd and its consolidated entity as at 30 June and complete the consolidation worksheet provided (ignore narrations)

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The following financial statements of Tom Ltd and its subsidiary Jerry Ltd have been extracted from their financial records at 30 June 2020.

	Tom Ltd ($000)	Jerry Ltd ($000)
*Reconciliation of operating profit and closing retained earnings*
Sales revenue	671.4	540
Cost of goods sold	(464)	(238)
Gross profit	207.4	302
Dividends received from Jerry Ltd	93	-
Management fee revenue	26.5
Gain on sale of plant	40	35
Expenses
Administrative expenses	(30.8)	(38.7)
Depreciation	(29.5)	(56.8)
Management fee expense	-	(26.5)
Other expenses	(101.1)	(72)
Profit before tax	205.5	143
Tax expense	(61.5)	(42.2)
Profit for the year	144	100.8
Retained earnings 30 June 2019	319.4	239.2
	463.4	340
Dividends paid	(137.4)	(93)
Retained earnings 30 June 2020	326	247
	Tom Ltd ($000)	Jerry Ltd ($000)
*Statement of financial position*
Shareholders equity
Retained earnings	326	247
Share capital	350	200
Current liabilities
Accounts payable	54.7	46.3
Tax payable	41.3	25
Non-current liabilities
Loans	173.5	116
	945.5	634.3
Current assets
Accounts receivable	59.4	62.3
Inventory	92	29
Non-current assets
Land and Buildings	224	326
Plant at cost	299.85	355.8
Accumulated depreciation	(85.75)	(138.8)
Investment in Jerry Ltd	356	-
	945.5	634.3

Other information

Tom Ltd acquired its 100 per cent interest in Jerry Ltd on 1 July 2015, that is, five years earlier. At that date the capital and reserves of Jerry Ltd were:

Share capital $200,000

Retained earnings 180,000

$380,000

At the date of acquisition all assets were considered to be fairly valued.

During the year Tom Ltd made total sales to Jerry Ltd of $60,000.
The closing inventory in Tom Ltd includes inventory acquired from Jerry Ltd at a cost of $33,000. This cost Jerry Ltd $28,000 to produce.
Jerry Ltd sold $50,000 in inventory to Tom Ltd.
The closing inventory of Jerry Ltd includes inventory acquired from Tom Ltd at a cost of $12,000. This cost Tom Ltd $10,000 to produce.
The opening inventory in Tom Ltd as at 1 July 2019 included inventory acquired from Jerry Ltd for $40,000 that cost Jerry Ltd $30,000 to produce.
On 1 July 2019 Jerry Ltd sold an item of plant to Tom Ltd for $116,000 when its carrying value in Jerry Ltds 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 has a policy of measuring its property, plant and equipment using the cost model. The group uses the straight-line method of depreciation.
Jerry Ltd paid $26,500 in management fees to Tom Ltd
The tax rate is 30 per cent.

Required:

Prepare the consolidation journal entries for Tom Ltd and its consolidated entity as at 30 June and complete the consolidation worksheet provided (ignore narrations).