Olive Ltd. sold inventory costing $90,000 to Hub Ltd. Olive Ltd. recorded a $20,000 profit before tax on these transactions. All these transactions occurred during the financial year 2021-22. On 30 June 2022, Hub Ltd. still had 20% of the inventory on hand and the receivable was still outstanding.  

Hub Ltd. owns all the share capital of Olive Ltd. The income tax rate is 30%.

 
Required:

Prepare all the relevant journal entries required for the consolidation worksheet on 30 June 2022 for the following transactions.

Answer rating: 100% (QA)

To prepare the relevant journal entries for the consolidation worksheet on 30 June 2022 we need to a... View the full answer