There is Parent company and their Sub Company that was acquired on the 1st of July 2022. Now that the financial year is over we need to prepare the consolidation journal entries, pre-acquisition entry and the consolidation adjustment entries required to eliminate intragroup transactions.

Q1- What is the journal entry to Eliminate Investment in Sub- What are the debits and credits? (6lines)

Investment in Sub	$ 810,000
Goodwill	$ 7,000
Sub's General Reserve	$ 30,000
Sub's Retained Earnings	$ 410,000
Sub's Share Capital	$ 300,000
Revlauation Surplus	$ 63,000

Q2- What is the journal entry to adjust depreciation on Equipment to FV- What are the debits and credits? (4lines)

Subs accumulated depreciation on buildings	2,000
Sub's Accumulated Depreciation in equipment	$196,000
Fair Value Adj	$ 90,000
Equipment historical cost	$ 496,000
Carrying value	$ 310,000
FV	$ 400,000
Life Exp	6
Sale carrying value	$ 76,500
Sub Dep rec	$ 10,000
Useful remaining life	4.5
Gain on sale	$ 13,500
Parent Annual Dep 102k/6	$ 17,000
Parent Annual Dep 76.5k/4.5	$ 17,000
Sub Annual Dep 90/4.5	$ 20,000
Dep exp	$ 17,000

Q3- What are the journal entries to adjust a) dividend declared and paid by Sub during the year b) dividend declared by Sub but not yet paid c)dividend receivable from Sub recorded by Parent

Dividends Declared	$ 18,000
Dividends paid	$ 8,000
Dividends Payable	$ 18,000