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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
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
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