Acquirer Ltd purchased from Acquiree Ltd the following parcel of assets and liabilities which

together operated as a business. The consideration paid for the acquisition was $21,000 cash,

plus 20,000 fully paid ordinary shares in Acquirer Ltd which were trading at $1.08 on the

ASX at the date of the acquisition. After the transaction, Acquiree Ltd continued its other

operations.

Information about the acquired business's assets and liabilities is as follows:

Required:

a) Prepare journal entries to record the acquisition of the business by Acquirer Ltd.

b) Prepare journal entries to record the disposal of the business by Acquiree Ltd