Wishart Ltd acquired all issued share capital of Wishart Hills

Ltd on $1$ July $2020$ for a cash payment of $$698,000.$ The share

capital and reserves of Wishart Hills Ltd at the date of

acquisition were: Share capital $$300,000$ Retained earnings $$200,000$

Revaluation surplus $$48,000$ All assets of Wishart Hills Ltd were

fairly valued at the date of acquisition, except for an equipment

that had a fair value $$20,000$ greater than its carrying amount. The

cost of the equipment was $$75,000$ and it had accumulated

depreciation of $$25,000.$ At the date of acquisition, it was

expected that the equipment had a remaining useful life of eight

years. There were no transactions and dividend declared between

Wishart Ltd and Wishart Hills Ltd from $1$ July $2020$ to $30$ June $2022.$

No dividend declared by Wishart Ltd and Wishart Hills Ltd for year

ended $30$ June $2022.$ On $1$ January $2023$ Wishart Hills Ltd sold an

item of plant to Wishart Ltd for $$55,000$ when its carrying value in

Wishart Hills$$s books was $$40,000($original cost $$90,000$ and

original estimated life of nine years$).$ There were no other

transactions between Wishart Ltd and Wishart Hills Ltd for year

ended $30$ June $2023.$ No dividend declared by Wishart Ltd and Wishart

Hills Ltd for year ended $30$ June $2023.2$ On $30$ June $2025$ Wishart

Ltd sold a property to Wishart Hills Ltd for $$400,000$ when its

carrying value, and original cost, in Wishart$$s books was $$420,000$

and estimated remaining useful life was twenty years. During

financial year $2025,$ Wishart Ltd provided management consultation

to Wishart Hills Ltd and this was the first time that Wishart Ltd

provided such service to Wishart Hills Ltd$.$ At the end of $2025,$

Wishart Hills Ltd paid $$5,000$ for these services and there is no

payable for these services at year end. There were no other

transactions between Wishart Ltd and Wishart Hills Ltd from $1$ July

$2023$ to $30$ June $2025.$ No dividend declared by Wishart Ltd and

Wishart Hills Ltd for year ended $30$ June $2024$ and $2025.$ Wishart Ltd

incurred the following transactions with Wishart Hills Ltd for year

ended $30$ June $2026$: $$ Wishart Ltd made sales of inventory to

Wishart Hills Ltd of $$200,000,$ while Wishart Hills Ltd sold

$$250,000$ of inventory to Wishart Ltd$.$ Closing inventories on $30$

June $2026$ included the following amounts: Wishart Ltd $$90,000$

$($bought from Wishart Hills Ltd$)$ and Wishart Hills Ltd $$150,000$

$($bought from Wishart Ltd$).$ Intragroup sales of inventory policy

applied. $$ The opening inventory in Wishart Ltd included stock

acquired from Wishart Hills Ltd$,$ which had originally cost Wishart

Hills Ltd $$140,000.$ The opening inventory of Wishart Hills Ltd

included stock acquired from Wishart Ltd$,$ which had originally cost

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

$$ Wishart Ltd declared and paid dividend $$75,000.$ Wishart Hills Ltd

declared and paid dividend $$50,000$ on $30$ June $2026.$ Wishart Hills

Ltd has a number of long$-$term loans, including an interest free

five$-$year loan for $$50,000$ from Wishart Ltd$.$ This interest free

five$-$year loan was effective from $1$ July $2025.$ You were appointed

as a financial accountant at Wishart Ltd and requested to prepare

the followings: I. acquisition analysis and adjustment$/$elimination

journal entries for consolidation at acquisition, $1$ July $2020$; II$.$

adjustment$/$elimination journal entries for consolidation as at $30$

June $2025,$ and III. adjustment$/$elimination journal entries for

consolidation as at $30$ June $2026.$ After meeting with your

supervisor you gathered the following information which you might

need to complete your work: $$ Wishart 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. $3$ Management team of Wishart

Ltd believes that goodwill acquired from business combination is

impaired by $$5,000$ in the current financial year $(1$ July $2025-30$

June $2026).$ There is no previous impairment of goodwill. $$ The

company tax rate is currently $30\%$ and this rate has not changed for

a number of 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.$$