Charlie Ltd acquired 90% of the share capital of Cameron Ltd on 1 January20X7. At that time, the fair values of Cameron Ltds net assets were as follows:

$

Land 180,000

Equipment 30,000

Accounts receivable 25,000

Accounts payable 18,000

On 1 January 20X7, the share capital of Cameron Ltd consisted of 100,000 ordinary shares issued for $1 each and fully paid.

The cost of acquisition under the takeover scheme consisted of 90c cash plus one share in Charlie for every share acquired from Cameron. Charlie shares were then trading at $1.20 each on the ASX (Australian Securities Exchange).

REQUIRED

Prepare the journal entry for Charlie Ltd for the above acquisition. (3 marks)

Reminder:

No marks will be awarded for workings/calculations.

Narrations are NOT required for journal entries.

Use the provided journal entry template to enter your answer.

The template should provide enough space. However, if you find the space is insufficient in the template or encounter a table formatting issue, write your journal entries below the template, and ensure clear labelling of DR or CR.