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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 $40,000 Fair value Machinery Fixtures & fittings $67,000 68,000 60,000 Vehicles 35,000 10,000 (16.000) $129,000 Share capital (80,000 shares at $1.00 per share) $80,000 20,000 29,000 $129,000 35,000 12,000 (18,000) Current assets Current liabilities Total net assets General reserve Retained earnings Total equity Required: Prepare the journal entries in the records of Quick Buck Ltd at 1 July 2019 for the acquisition.

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 $40,000 Fair value Machinery Fixtures & fittings $67,000 68,000 60,000 Vehicles 35,000 10,000 (16.000) $129,000 Share capital (80,000 shares at $1.00 per share) $80,000 20,000 29,000 $129,000 35,000 12,000 (18,000) Current assets Current liabilities Total net assets General reserve Retained earnings Total equity Required: Prepare the journal entries in the records of Quick Buck Ltd at 1 July 2019 for the acquisition.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...
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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 $40,000 Fair value Machinery Fixtures & fittings $67,000 68,000 60,000 Vehicles 35,000 10,000 (16.000) $129,000 Share capital (80,000 shares at $1.00 per share) $80,000 20,000 29,000 $129,000 35,000 12,000 (18,000) Current assets Current liabilities Total net assets General reserve Retained earnings Total equity Required: Prepare the journal entries in the records of Quick Buck Ltd at 1 July 2019 for the acquisition.
Transcribed Image Text: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 $40,000 Fair value Machinery Fixtures & fittings $67,000 68,000 60,000 Vehicles 35,000 10,000 (16.000) $129,000 Share capital (80,000 shares at $1.00 per share) $80,000 20,000 29,000 $129,000 35,000 12,000 (18,000) Current assets Current liabilities Total net assets General reserve Retained earnings Total equity Required: Prepare the journal entries in the records of Quick Buck Ltd at 1 July 2019 for the acquisition.
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