Tweed Ltd acquired all issued share capital of Tweed South Ltd on $1$ July $2018$ for a cash payment of $$697,000.$ The share capital and reserves of Tweed South Ltd at the date of acquisition were:

Share capital $$290,000$

Retained earnings $$220,000$

Revaluation surplus $$47,000$

All assets of Tweed South Ltd were fairly valued at the date of acquisition, except for an equipment that had a fair value $$21,000$ greater than it$$s carrying amount. The cost of the

equipment was $$85,000$ and it had accumulated depreciation of $$30,000.$ At the date of acquisition, it was expected that the equipment had a remaining useful life of ten years. There

were no transactions and dividend declared between Tweed Ltd and Tweed South Ltd from $1$ July $2018$ to $30$ June $2020.$ No dividend declared by Tweed Ltd and Tweed South Ltd for

year ended $30$ June $2020.$

On $1$ January $2021$ Tweed South Ltd sold an item of plant to Tweed Ltd for $$55,000$ when its carrying value in Tweed South$$s books was $$45,000($original cost $$90,000$ and original estimated life of nine years$).$ There were no other transactions between Tweed Ltd and Tweed South Ltd for year ended $30$ June $2021.$ No dividend declared by Tweed Ltd and Tweed South Ltd for year ended $30$ June $2021.$

On $30$ June $2023$ Tweed Ltd sold a property to Tweed South Ltd for $$410,000$ when its carrying value, and original cost, in Tweed$$s books was $$430,000$ and estimated remaining

useful life was twenty years. During financial year $2023,$ Tweed Ltd provided management consultation to Tweed South Ltd and this was the first time that Tweed Ltd provided such service to Tweed South Ltd$.$ At the end of $2023,$ Tweed South Ltd paid $$8,000$ for these services and there is no payable for these services at year end. There were no other

transactions between Tweed Ltd and Tweed South Ltd from $1$ July $2021$ to $30$ June $2023.$ No dividend declared by Tweed Ltd and Tweed South Ltd for year ended $30$ June $2022$ and

$2023.$

Tweed Ltd incurred the following transactions with Tweed South Ltd for year ended $30$ June

$2024$:

$$ Tweed Ltd made sales of inventory to Tweed South Ltd of $$210,000,$ while Tweed South Ltd sold $$240,000$ of inventory to Tweed Ltd$.$

$$ Closing inventories on $30$ June $2024$ included the following amounts: Tweed Ltd $$90,000($bought from Tweed South Ltd$)$ and Tweed South Ltd $$150,000($bought from Tweed Ltd$).$ Intragroup sales of inventory policy applied.

$$ The opening inventory in Tweed Ltd included stock acquired from Tweed South Ltd$,$which had originally cost Tweed South Ltd $$140,000.$ The opening inventory of Tweed

South Ltd included stock acquired from Tweed Ltd$,$ which had originally cost Tweed Ltd

$$160,000.$ Intragroup sales of inventory policy applied.

$$ Tweed Ltd declared and paid dividend $$85,000.$ Tweed South Ltd declared and paid dividend $$45,000$ on $30$ June $2024.$

$$ Tweed South Ltd has several long$-$term loans, including an interest free five$-$year loan for $$60,000$ from Tweed Ltd$.$ This interest free five$-$year loan was effective from $1$ July $2023.$

You were appointed as a financial accountant at Tweed Ltd and requested to prepare the followings:

I. acquisition analysis and adjustment$/$elimination journal entries for consolidation at acquisition, $1$ July $2018$;

II$.$ adjustment$/$elimination journal entries for consolidation as at $30$ June $2023,$ and

III. adjustment$/$elimination journal entries for consolidation as at $30$ June $2024.$

After meeting with your supervisor, you gathered the following information which you might need to complete your work:

$$ Tweed Ltd has the following accounting policies for the economic entity:

$$ All property, plant and equipment are depreciated using the straight$-$line method with no residual value. For part$-$years, depreciation is to be calculated on the number of months the non$-$current asset is held in the relevant year.

$$ Revaluation adjustments on acquisition are to be made on consolidation only, not in the books of any subsidiary;

$$ Intragroup sales of inventory to be at a mark$-$up of $50\%$ on cost$.$

$$ All calculated amounts are to be rounded to the nearest whole dollar. Companies in the group do not show cents in any journals, worksheets, or financial statements.

$$ Management team of Tweed Ltd believes that goodwill acquired from business combination is impaired by $$10,000$ in the current financial year $(1$ July $2023-30$ June

$2024).$ There is no previous impairment of goodwill.

$$ The company tax rate is currently $30\%$ and this rate has not changed for several years.

$$ Journal narrations are required.

$$ Number each year consolidation elimination$/$adjusting journal entries by $1,2,3,...,$ etc;. Where more than one journal entry is needed for an event to be completely accounted for add the letters a$,$b$,$c$,...$etc to them as necessary