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Sample question for journal entry type question

Accounting

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Sample question for journal entry type question. Please be reminded that in the real exam, the topic for the journal entry question could be from any Module 2 week(s). On 1 March 2019, Turtle Ltd acquired a parcel of assets and liabilities comprising a business directly from Ninja Ltd. The assets and liabilities at 1 March 2019 were as follows: Carrying amount ($) 3 500 Fair value (S) 3 500 Cash Accounts receivable 13 000 13 000 77 000 80 000 Inventory Equipment Accounts payable 135 000 210 000 2 000 2 000 For this acquisition, Turtle Ltd issued 70,000 shares, the fair value of which at the acquisition date was $3.80 each. Costs of issuing these shares amounted to $1,500. Legal costs associated with the acquisition of Ninja Ltd were $3,200. Additional information: . Ninja Ltd had not recorded a legal claim as a liability due to the uncertainty of an outcome. Turtle Ltd estimated the fair value of this contingent liability to be $18,000. Required: Prepare the journal entries in the records of Turtle Ltd to account for the above acquisition. Narrations (for journal entries) are not required. Please prepare your journal entries neatly. An illustrative example is provided below for the format of journal entries. Example only: Dr Interest expense 5000 Cr Interest payable 5000