Case 2: Accounting by acquirer On 1 July 2019, Angelina Ltd took control of the assets and liabilities of Jolie Ltd. At this date the statement of financial position of Jolie Ltd was as follows: Carrying amount s 40000 60000 35000 10000 16000 $129000 $ 80000 20000 29000 $129000 Fair value 67000 68000 35000 12000 (18000) Machinery Fixtures & fittings Vehicles Current assets Current liabilities Total net assets Share capital (80000 shares at $1.00 per share) General reserve Retained earnings Total equity Required Prepare the journal entries in the records of Angelina Ltd at 1 July 2019 in each of the following situations, assuming the costs of issuing the shares by Angelina Ltd cost $1600 (a) Angelina Ltd issued 80 000 shares having a fair value of $2.40 per share in exchange for the net assets of Jolie Ltd (b) Angelina Ltd issued 80 000 shares having a fair value of $2.00 per share in exchange for the net assets of Jolie Ltd (c) Angelina Ltd acquired the shares of Jolie Ltd. The agreement was that Angelina Ltd would pay the shareholders of Jolie Ltd one share in Angelina Ltd for every two shares held in Jolie Ltd plus $1 in cash for each share held in Jolie Ltd. Shares in Angelina Ltd have a fair value of $1.80 per share