Make a journal entry transaction for king ltd

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Reference no: EM132645763

King Ltd acquired 100% of the share capital Sing Ltd on 1 July 2015, for $356,000. At the acquisition date, the equity of Sing Ltd comprise of the following Share capital 200,000 Retained earnings 80,000 280,000 The identifiable net assets of Sing Ltd were recorded at fair value at the date of acquisition, except for inventory that had a fair value which was $2,000 higher than its carrying amount, and an item of plant (cost $25,000 and accumulated depreciation of $15,000) that had a fair value of $19,000. This plant had a remaining useful of 6 years, with no residual value. All of the inventory was sold by 30 June 2016, but the plant is still addition to this, Sing Ltd reported a contingent liability of $15,000 on the acquisition date and King Ltd decided the fair value of that should be $7,000

Question 1: Make a journal entry transaction for King Ltd

Reference no: EM132645763

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