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Case Study 3 To ascertain your knowledge and skills in business combinations, Suzanne has requested that you complete the relevant journal entries for a major
Case Study
To ascertain your knowledge and skills in business combinations, Suzanne has requested that you complete the relevant journal entries for a major client, Dream Castles. She has also asked you specify what ethical considerations should be considered when valuing a business.
Dream Castles is a company formed by buying an existing business Getaway Places on August
Getaway Places had recorded Accounts Receivable at $ in its latest Balance Sheet that was overstated and subsequently revalued.
Assets and liabilities acquired at agreed fair values were as follows:
The purchase consideration was $ payable in Cash $ and, the issue of Ordinary Shares at $ each.
Required
a Prepare the general journal entries in the books of Dream Castles to record the purchase of Getaway Places.
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