Make journal entries to record acquisition by swan river

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Swan River Ltd purchased a parcel of assets and liabilities comprising a business directly from Lyneham Pty Ltd. The parcel, measured at net fair values, consisted of: Balance of Accounts: Plant 50,000 Land 80,000 Vehicles 40,000 Accounts receivable 10,000 Accounts payable (16,000) Total 164,000

Required:

Question 1: Prepare journal entries to record the acquisition by Swan River Ltd, assuming that:

a) The cost of acquisition was $200,000 cash.

b) The cost of acquisition was $144,000 cash.

Reference no: EM132518649

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