Small Ltd bought a 30% interest in a joint venture, Fry Ltd, for $50 000, on 1

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Question:

Small Ltd bought a 30% interest in a joint venture, Fry Ltd, for $50 000, on 1 July 2017. The equity of

Fry Ltd at the acquisition date was:

All the identifiable assets and liabilities of Fry Ltd were recorded at amounts equal to their fair values.

Profits and dividends for the years ended 30 June 2018 to 2020 were as follows:

REQUIRED

(a)Prepare journal entries in the records of Small Ltd for each of the years ended 30 June 2018 to 2020 in relation to its investment in Fry Ltd. (Assume Small Ltd does not prepare consolidated financial statements.)

(b)Prepare the consolidation worksheet entries to account for Small Ltd's interest in the joint venture, Fry Ltd. (Assume Small Ltd does prepare consolidated financial statements.)