Prepare the journal entries in the records of Quick Buck Ltd

Assignment Help Accounting Basics
Reference no: EM132949509

Question - On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buck Ltd issued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of Eldorado Ltd. The costs of issuing the shares by Quick Buck Ltd cost $1,600.

At this date the statement of financial position of Eldorado Ltd was as follows:

 

Carrying amount

Fair value

Machinery

$40,000

$67,000

Fixtures & fittings

60,000

68,000

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 $1.00 per share)

$80,000

 

General reserve

20,000

 

Retained earnings

29,000

 

Total equity

$129,000

 

Required - Prepare the journal entries in the records of Quick Buck Ltd at 1 July 2019 for the acquisition.

Reference no: EM132949509

Questions Cloud

Waste management of lgu : Waste Management of LGU, factors that can affect the waste management initiated by LGU. Situation: existing policies are not effective. Parties involved: Commun
Prepare the consolidated statement of financial position : Prepare the consolidated statement of financial position of Electra as at 31 March 20X9 - At 31 March 20X9 there was an impairment loss of $120,000 in value
Describe the effects of pandemic in the tourism : 1. The Philippine Tourism Industry is one of the affected during pandemic, what do you think will be the future of the industry after this?
Calculate the unit contribution margin for batch : Flying High Pies manufactures gourmet pies for speciality restaurants. The vegetarian filling of the pie is made by the mixing division and is then transferred
Prepare the journal entries in the records of Quick Buck Ltd : On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Prepare the journal entries in the records of Quick Buck Ltd
What is application of limit of function in daily life : What is application of limit of function in daily life
How companies use information systems : For this week's discussion, select one of the three areas (listed below) and discuss how companies can use information systems and the data within them to addre
What is the new volume of the football : When the football is brought indoors, the temperature in the football drops to 200C. What is the new volume of the football
What is the correlation between privacy and confidentiality : What is the correlation between privacy and confidentiality? What are the positive and negative effects associated with monitoring employees?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd