consolidation workseet 590386

?Question 2 Jetty Ltd purchased 100% of the shares of Mast Ltd on 1 July 2011. Financial information for Jetty Ltd and Mast Ltd for the year ended 30 June 2013 (two years after acquisition) is shown below: ?Jetty Ltd?Mast Ltd??Sales revenue?$78,000?$40,000??Proceeds from sale of office furniture? ?3,000??Dividend revenue? 4,400? 1,600??Total income?82,400?44,600??Cost of sales?60,000?30,000??Other expenses?10,800?7,500??Total expenses?70,800?37,500??Profit before income tax?11,600?7,100??Income tax expense?(3,000)?(2,200)??Profit for the year?8,600?4,900??Retained earnings (01/07/2012)?14,500?2,800???23,100?7,700??Interim dividend paid?4,000?2,000??Final dividend declared?8,000?2,400???12,000?4,400??Retained earnings (30/06/2013)?11,100?3,300?? ??????????Additional information: (a)  ?On acquisition date, Jetty Ltd purchased 100% of the shares of Mast Ltd for $50,000. The equity of the two entities at this date was as follows: ?Jetty Ltd?Mast Ltd??Asset revaluation surplus?$25,000?$4,000??Retained earnings ?14,500?2,800??Share capital?50,000?40,000?? ??????????At 1 July 2011, all the identifiable assets and liabilities of Mast Ltd were recorded at fair value except for the following: ?Carrying amount?Fair value??Plant and equipment (cost $80,000)?$60,000?$61,000??Inventory?3,000?3,500?? ??????????All of this inventory was sold by December 2011. The plant and equipment had a remaining useful life of 5 years. Any valuation adjustments are made on consolidation. ????(b)  ?Jetty Ltd records dividends receivable as revenue when dividends are declared. ????(c)  ?The opening inventory of Mast Ltd included goods which cost Mast Ltd $2,000. Mast Ltd purchased this inventory from Jetty Ltd at cost plus 33¹/³ %. ????(d)  ?Intragroup sales totalled $10,000 for the year. Sales from Jetty Ltd to Mast Ltd, at cost plus 10%, amounted to $5,600. The closing inventory of Jetty Ltd included goods which cost Jetty Ltd $4,400. Jetty Ltd purchased this inventory from Mast Ltd…