Acquisition of two businesses    LO6 Blink Ltd is a manufacturer of specialised industrial machinery seeking to diversify its operations. After protracted negotiations, the directors decided to purchase the assets and liabilities of Weeping Ltd and the spare parts retail division of Angel Ltd. At 30 June 2021 the statements of financial position of the three entities were as follows. Blink Ltd Weeping Ltd Angel Ltd Land and buildings (net) $ 60 000 $ 25 000 $ 40 000 Plant and machinery (net) 100 000 36 000 76 000 Office equipment (net) 16 000 4 000 6 000 Shares in listed companies 24 000 15 000 20 800 Debentures in listed companies 20 000 0 0 Accounts receivable 35 000 26 000 42 000 Inventories 150 000 54 000 30 200 Cash 59 000 11 000 9 000 Goodwill 0 7 000 0 $464 000 $178 000 $224 000 Accounts payable $ 26 000 $ 14 000 $ 27 000 Current tax liability 21 000 6 000 7 000 Provision for leave 36 000 10 000 17 500 Bank loan 83 000 16 000 43 500 Debentures 60 000 50 000 0 Share capital (issued at $1, fully paid) 200 000 60 000 90 000 Retained earnings 38 000 22 000 39 000 $464 000 $178 000 $224 000 The acquisition agreement details are as follows. Weeping Ltd Blink Ltd is to acquire all the identifiable assets (other than cash) and liabilities (other than debentures, provisions and tax liabilities) of Weeping Ltd for the following purchase consideration. • Shareholders in Weeping Ltd are to receive three shares in Blink Ltd, credited as fully paid, in exchange for every four shares held. The shares in Blink Ltd are to be issued at their fair value of $3 per share. Costs of share issue amounted to $2000. • Blink Ltd is to provide sufficient cash which, when added to the cash already held, will enable Weeping Ltd to pay out the current tax liability and provision for leave, to redeem the debentures at a premium of 5%, and to pay its liquidation expenses of $2500. The fair values of the assets and liabilities of Weeping Ltd are equal to their carrying amounts with the exception of the following. Fair value Land and buildings $60 000 Plant and machinery 50 000 Incidental costs associated with the acquisition amount to $2500. Angel Ltd Blink Ltd is to acquire the spare parts retail business of Angel Ltd. The following information is available concerning that business, relative to the whole of Angel Ltd. Total amount Spare parts division Carrying amount Carrying amount Fair value Land and buildings (net) $40 000 $20 000 $30 000 Plant and machinery (net) 76 000 32 000 34 500 Office equipment (net) 6 000 2 000 2 500 Accounts receivable 42 000 21 000 20 000 Inventories 30 200 12 000 12 000 Accounts payable 27 000 14 000 14 000 Provision for leave 17 500 7 000 7 000 The divisional net assets are to be acquired for $10 000 cash, plus 11 000 ordinary shares in Blink Ltd issued at their fair value of $3, plus the land and buildings that have been purchased from Weeping Ltd. Incidental costs associated with the acquisition are $1000. Required 1. Prepare the acquisition analysis for the acquisition transactions of Blink Ltd. 2. Prepare the journal entries for the acquisition transactions in the records of Blink Ltd.