Question 2 15 points SAVE ANSWER Please ensure that you leave yourself enough time to upload your file responses. It is recommended that you create your Excel file and upload your answer file as you complete the question. Question 2 Consolidated Financial Statements-Consolidated financial statements and intragroup transactions On 1 July 2019, Cross Ltd acquired 100% of the equity in Bow Ltd. The following intragroup transactions need to be considered in the preparation of the group's consolidated financial statements for the year ended 30 June 2021: a. On 1 July 2019, Cross Ltd sold an item of equipment to Bow Ltd for $21,000. This equipment had a carrying amount in the records of Cross Ltd of $13,000 at the time of sale. This type of plant is depreciated at 20% per year on cost. b. At 1 July 2020, there was a profit in inventory of Cross Ltd of $13,000 on goods acquired from Bow Ltd in the previous period. All this inventory was sold by 30 June 2021. c. During the year ended 30 June 2021, Bow Ltd rented a warehouse from Cross Ltd, paying $20,000. d. Cross Ltd issued 1,000 10% debentures at $150 each on 1 October 2020. Bow Ltd acquired 250 of these. Interest is payable half-yearly on 31 March and 30 September. Accruals have been recognised in each entities' accounts. Required: 1. Prepare the consolidation journal entries at 30 June 2021 to adjust for the effects of the above intragroup transactions. (11 marks) 2. Are only those entities in which another entity owns more than 50% of the issued shares classified as subsidiaries? Refer to the relevant accounting standard paragraph(s) in your response. (4 marks)