Reference no: EM133530854

Case Study: Jasmine Ltd acquired all the issued shares of Kya Ltd on 1 January 2020. The following intra-group transactions have taken place between the two entities since this acquisition:

Assume an income tax rate of 30%

On 1 July 2021 (prior year) Jasmine issued 5,000 9% Debentures of $1,000 nominal value. Kya acquired 1,000 of these debentures. Interest is payable half yearly on 30 June and 31 December
On 11 November 2022, Jasmine Ltd sold inventory to Kya Ltd for $490,000. These goods had cost Kya Ltd $330,000. Half of the inventory has been sold to external parties by year end, 30 June 2023
On 1 January 2021 (prior year), Jasmine Ltd sold machinery costing $99,000 to Kya Ltd for $63,000. Jasmine Ltd had recorded accumulated depreciation of $45,000 (machinery) prior to the sale. Both entities depreciate assets at 5% p.a. on cost.
On 1 January 2022 (prior year), Kya Ltd sold inventory to Jasmine Ltd for $750,000. These goods had cost Kya Ltd $570,000. No goods were sold last year, however, all inventory has been sold to external parties during the current year, 30 June 2023.

Required:

Prepare the consolidation worksheet entries as at 30 June 2023 to adjust for the effects of the above inter-entity transactions. Include dates for each entry.