Question 1 RCK Ltd issues a prospectus inviting the public to subscribe for 90 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment. Applications are received for 108 million shares during July 2018. The directors allot 90 million shares on 15 August 2018. All applicants receive shares on a pro rata basis. The amounts payable on allotment are due by 20 September 2018. By 20 September 2018 the holders of 18 million shares have failed to pay the amounts due on allotment. The directors forfeit the shares on 30 September 2018. The shares are resold on 15 October 2018 as fully paid. An amount of $2.00 per share is received. The balance of forfeited shares were refunded on 20 October 2018. Required: Provide the journal entries necessary to account for the above transactions and events. (12 marks) Question 2 Road Corporation acquired all of Conger Corporation's voting shares on 2018, for $470,000. At that time Conger reported ordinary shares outstanding of $80,000 and retained earnings of $130,000. The book values of Conger's assets and liabilities approximated fair values, except for land, which had a book value of $80,000 and a fair value of $100,000, and buildings, which had a book value of $220,000 and a fair value of $400,000. Land and buildings are the only noncurrent assets that Conger holds. Ignore taxes. (12 marks) January 1, Required: a) Compute the amount of goodwill at the date of acquisition. (6 Marks) b) Give the consolidation entry or entries required immediately following the acquisition to prepare a consolidated balance sheet. (6 marks)