Make the journal entries in the records of Anglo Ltd

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Question - On 1 July 2019, Anglo Ltd took control of the assets and liabilities of Jim Ltd. At this date the statement of financial position of Jim Ltd was as follows:

Carrying Amount Fair value

Machinery 40 000 64 000

Fixtures & fittings 60 000 65 000

Vehicles 35 000 35 000

Current assets 10 000 12 000

Current liabilities (16 000) (18 000)

Total net assets $ 129 000

Share capital

(80,000 shares at $1/share) 80 000

General reserve 20 000

Retained earnings 29 000

Total Equity $ 129 000

Required - Make the journal entries in the records of Anglo Ltd at 1 July 2019 in each of the following situations, assuming the costs of issuing the shares by Anglo Ltd cost $1600.

Anglo Ltd issued 80 000 shares having a fair value of $2.00 per share in exchange for the net assets of Jim Ltd.

Reference no: EM132969465

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