Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answers to all questions needed Lisa Corporation and Mora Corporation are two companies that have decided to amalgamate to become LM Corporation in beginning year

image text in transcribed

image text in transcribed

answers to all questions needed

Lisa Corporation and Mora Corporation are two companies that have decided to amalgamate to become LM Corporation in beginning year of 2022 . This new company is going to acquire all the assets (except cash of RM5,000 each) and liabilities from both two previous companies. Furthermore, RM100,000 of ordinary shares are issued to the founders at RM1 for cash in order to register LM Corporation. The consideration transferred was as follow: The preference shares issued by LM Corporation is to be used to discharge the preference shareholders of Mora. Below are the Statements of Financial Position of Lisa Corporation and Mora Corporation as at 31 December 2021. Additional information: i. The fair values of the assets: ii. Both Lisa Corporation and Mora Corporation are to be wound up. The cash retained by the two companies are to be used to discharge the liquidation expense. Required: For calculation questions, show all your workings and round-up to the nearest figures. (a) Calculate the goodwill or bargain purchase. (3 marks) (b) Prepare journal entries to close the book of Lisa Corporation. (5 marks) (c) Prepare journal entries to close the book of Mora Corporation. (6.5 marks) (d) Prepare the Statement of Financial Position of Sime Bhd. immediately after the amalgamation of Lisa Corporation and Mona Corporation. (5.5 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

HRD Audit Evaluating The Human Resource Function For Business Improvement

Authors: RAO

1st Edition

0761993509, 978-0761993506

More Books

Students also viewed these Accounting questions