AFGAN Ltd owns all of the shares of BLINDA Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%.
- AFGAN Ltd sold inventory to BLINDA Ltd on 1 September 2018 for $27 000. This inventory had cost AFGAN Ltd $18 000. One-third of the inventory was sold by BLINDA Ltd to Goanna Ltd for $13 000 and one-third to Galah Ltd for $13 200.
- AFGAN Ltd manufactures certain items which it then markets through BLINDA Ltd. During the current period, AFGAN Ltd sold items for $18 000 to BLINDA Ltd at cost plus 20%. BLINDA Ltd has sold 75% of these transferred items at 30 June 2019.
- During June 2019, BLINDA Ltd declared a $2000 dividend. The dividend was paid in August 2020.
- In January 2019, BLINDA Ltd paid a $4500 interim dividend.
- AFGAN Ltd sold a warehouse to BLINDA Ltd for $150 000. This had originally cost AFGAN Ltd $123 000. The transaction took place on 1 January 2018. BLINDA Ltd charges depreciation at 5% p.a. on a straight-line basis.
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