TACC203 Group Assignment T1 2017 Group members: 3 or 4 members (Please note that 1 student is NOT a group and -5 marks penalty will apply for...

Inventory

21 600

28 000

Additional information regarding City Ltd:

• The patent was considered to have an indefinite life.
• The plant had a further life of 10 years, and was depreciated on a straight-line basis.
• All the inventory was sold by 30 June 2017.
• In June 2017, City Ltd conducted an impairment test of goodwill and considered it to be impaired by $1300.
• In May 2017, City Ltd transferred $30 000 from the retained earnings on hand at 1 July 2016 to a general reserve.
• The tax rate is 30%.

Required:

Prepare the consolidation adjustment entries at 1 July 2016 and 30 June 2017.