(a) Bond Ltd acquired all the share capital of Moneypenny Ltd on 1 Jan 20X8. At...

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(a) Bond Ltd acquired all the share capital of Moneypenny Ltd on 1 Jan 20X8. At that time, the values of Moneypenny Ltd's net assets were as follows: $ Recorded by Moneypenny Fair value Land 80 000 90 000 Plant and equipment Vehicles 60 000 40 000 50 000 nil nil Patent 30 000 20 000 Accounts receivable 25 000 Accounts payable 45 000 45 000 The share capital of Moneypenny Ltd consisted of 100,000 ordinary shares issued for $1 and fully paid. The cost of acquisition under the takeover scheme consisted of 80c cash plus one share in Bond for every one share in Moneypenny. On January 1 20X8 Bond shares were trading at $1.20 on the ASX. Moneypenny shares had been trading at $1.60. REQUIRED: Calculate amount of goodwill/bargain (if any) for the acquisition (2 marks). Prepare journal entries for the acquisition of the shares in the books of Bond Ltd (4 marks). %24 (a) Bond Ltd acquired all the share capital of Moneypenny Ltd on 1 Jan 20X8. At that time, the values of Moneypenny Ltd's net assets were as follows: $ Recorded by Moneypenny Fair value Land 80 000 90 000 Plant and equipment Vehicles 60 000 40 000 50 000 nil nil Patent 30 000 20 000 Accounts receivable 25 000 Accounts payable 45 000 45 000 The share capital of Moneypenny Ltd consisted of 100,000 ordinary shares issued for $1 and fully paid. The cost of acquisition under the takeover scheme consisted of 80c cash plus one share in Bond for every one share in Moneypenny. On January 1 20X8 Bond shares were trading at $1.20 on the ASX. Moneypenny shares had been trading at $1.60. REQUIRED: Calculate amount of goodwill/bargain (if any) for the acquisition (2 marks). Prepare journal entries for the acquisition of the shares in the books of Bond Ltd (4 marks). %24

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Acquisition 120000 Net Asset of Money Penny 1... View the full answer