The following information has been extracted from the financial statements of Apple Ltd and its subsidiary Pear Ltd at 30 June 2019.

Apple Ltd ($) Pear Ltd ($)

Reconciliation of opening and closing

retained earnings

Sales revenue 593,400 498,800

Cost of goods sold (399,040) (204,680)

Gross profit 194,360 294,120

Dividends revenue from Pear Ltd 63,984 ---

Management fee revenue 22,790 ---

Profit on sale of plant 30,100 ---

Expenses

Administrative expenses (26,488) (33,282)

Depreciation (21,070) (48,848)

Management fee expense --- (22,790)

Other expenses (86,946) (66,220)

Profit before tax 176,730 122,980

Tax expense (52,890) (36,292)

Profit for the year 123,840 86,688

Retained earnings-30 June 2018 274,684 205,712

398,524 292,400

Dividends paid (118,164) (79,980)

Retained earnings-30 June 2019 280,360 212,420

Statements of financial position

Shareholders' equity

Retained earnings 280,360 212,420

Share capital 301,000 172,000

Current liabilities

Accounts payable 47,042 39,818

Tax payable 35,518 21,500

Non-current liabilities

Loans 149,210 99,760

813,130 545,498

Current assets

Accounts receivable 51,084 53,578

Inventory 79,120 24,940

Non-current assets

Land and buildings 192,640 280,360

Plant -at cost 257,871 305,988

Accumulated depreciation (73,745) (119,368)

Investment in Pear Ltd 306,160 --

813,130 545,498

Other information

1. Apple Ltd acquired its 80 per cent interest in Pear Ltd on 1 July 2010. At that date the capital and reserves of Pear Ltd were:

Share capital $172,000

Retained earnings $146,200

$318,200

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

2. The management of Apple Ltd use the partial goodwill method.

3. During the year Apple Ltd made total sales to Pear Ltd of $55,900, while Pear Ltd sold $44,720 in inventory to Apple Ltd.

4. The opening inventory in Apple Ltd as at 1 July 2018 included inventory acquired from Pear Ltd for $36,120 that cost Pear Ltd $30,100 to produce.

5. The closing inventory in Apple Ltd includes inventory acquired from Pear Ltd at a cost of $28,896. This cost Pear Ltd $24,080 to produce.

6. The closing inventory of Pear Ltd includes inventory acquired from Apple Ltd at a cost of $10,320. This cost Apple Ltd $8,256 to produce.

7. The management of Apple Ltd believe that goodwill acquired was impaired by $2,580 in the year to 30th June 2019. The balance on the accumulated impairments of goodwill account brought forward was $19,350.

8. On 1 July 2018 Apple Ltd sold an item of plant to Pear Ltd for $99,760 when its carrying value in Apple Ltd's accounts was $69,660 (cost $116,100, accumulated depreciation $46,440). This plant is assessed as having a remaining useful life of six years.

9. Pear Ltd paid $22,790 in management fees to Apple Ltd.

10. The tax rate is 30 per cent.

REQUIRED

Prepare the consolidation worksheet JOURNAL ENTRIES for the preparation of consolidated financial statements by Apple Ltd at 30 June 2019. NOTE a consolidation worksheet is NOT required. Your answer should include an acquisition analysis with a calculation of goodwill, pre-acquisition entries, dividend adjustments, intragroup sales and transfers, and a calculation of the non-controlling interest.