Consideration transferred   LO6 On 1 September 2019, the directors of Face Ltd approached the directors of Bo Ltd with the following proposal for the acquisition of the issued shares of Bo Ltd, conditional on acceptance by 90% of the shareholders of Bo Ltd by 30 November 2019. • Two fully paid ordinary shares in Face Ltd plus $3.10 cash for every preference share in Bo Ltd, payable at acquisition date. • Three fully paid ordinary shares in Face Ltd plus $1.20 cash for every ordinary share in Bo Ltd. Half the cash is payable at acquisition, and the other half in 1 year’s time. By 30 November, 90% of the ordinary shareholders and all of the preference shareholders of Bo Ltd had accepted the offer. The directors of Face Ltd decided not to acquire the remaining ordinary shares. Share transfer forms covering the transfer were dated 30 November 2019, and showed a price per Face Ltd ordinary share of $4.20. Face Ltd’s incremental borrowing rate is 8% p.a. Face Ltd then appointed a new board of directors of Bo Ltd. This board took office on 1 December 2019 and immediately: • revalued the asset Shares in Other Companies to its market value (assume no tax effect) • used the surplus so created to make a bonus issue of $32 000 to ordinary shareholders, each shareholder being allocated two ordinary shares for every ten ordinary shares held. The statement of financial position of Bo Ltd at 30 November 2019 was as follows. BO LTD Statement of financial position as at 30 November 2019 Current assets $120 000 Non‐current assets Land and buildings $203 000 Plant and equipment 168 000 Less: Accumulated depreciation (45 000) Shares in other companies listed on stock exchange at cost (market $190 000) 30 000 Government bonds, at cost 50 000 Total non‐current assets 406 000 Total assets 526 000 Current liabilities 30 000 Net assets 496 000 Equity Share capital 80 000 ordinary shares fully paid 160 000 50 000 6% preference shares fully paid 100 000 260 000 Retained earnings 236 000 Total equity $496 000 Required Prepare all journal entries (in general form) to record the above transactions in the records of

(a) Face Ltd and

(b) Bo Ltd.