The financial statements of Jewel Ltd and its subsidiary Opal Ltd are shown below:

Additional information

(a) Jewel Ltd acquired the interest in Opal Ltd on 1 January 20x0 when the shareholders’ equity of Opal was as follows:

(b) Goodwill and non-controlling interests

(c) Intercompany sales

(d) Taxation rate was 20%. Tax effects are to be considered wherever appropriate.

Required:
1. Prepare consolidation adjustment and elimination entries for the year ended 31 December 20x2. Show all relevant workings. Worksheets are not required.
2. Perform an analytical check on non-controlling interests as at 31 December 20x2.
3. Perform an analytical check on consolidated retained earnings as at 31 December 20x2.

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Income Statement and Partial Statement of Changes in Equity For the Year Ended 31 December 20x2 Jewel Ltd Sales.. Operating profit.. Dividend income from Opal. Profit before tax.. Tax... $10,000,000 $ 1,000,000 23,400 $ 1,023,400 (220,000) $ 803,400 2,050,000 Profit after tax. Retained earnings, 1 January 20x2. Dividends declared.. (100,000) Retained earnings, 31 December 20x2... $ 2,753,400 Opal Ltd $3,300,000 $ 160,000 $ 160,000 (35,200) $ 124,800 210,000 (29,250) $ 305,550