Given below are the account balances of WAX Bhd and FORK Bhd at 31 December x12 An agreement was drawn up on 1 January x13 for the acquisition by WAX Bhd of all the assets and liabilities of FORK Bhd The assets taken over will not include the investment in shares in WAX Bhd Subsequently, FORK Bhd will be wound up The terms of the agreement are The shareholders of FORK Bhd other than WAX Bhd are to receive seven shares in WAX for every ten shares held in Fox Bhd The shares in WAX Bhd already held by FORK Bhd will be used as part of the settlement It was agreed by all parties concerned that the fair value of one ordinary share of WAX Bhd for the negotiation is RM2 50 The preference shareholders are to receive RM12,000,000 B preference shares in WAX Bhd These shares will be issued at RM1 each WAX Bhd is to issue sufficient 10 percent debentures to discharge the 12 percent debentures in FORK Bhd at a premium of 5 percent The carrying value of all the assets in FORK Bhd is considered to reflect the fair value except for land and building, the fair value of which is RM22,000,000 Required Calculate the consideration transferable to FORK Bhd Calculate the goodwill on acquisition of FORK Bhd Prepare the journal entries acquisition of FORK Bhd in the books of WAX Bhd Prepare the ledger accounts to close the books of FORK Bhd Prepare the statement of financial position of WOLF Bhd after the acquisition of FORK Bhd WAX Bhd RM'000 5,000 29,000 14,000 8,000 5,600 FORK Bhd RM'000 7,500 16,000 21,000 7,500 Intangibles Plant and machinery (cost) Land and building (cost) Fumiture and fittings (cost) Investment in shares of FORK (5,000,000 shares) Investment in shares of WAX (2,000,000 shares) Inventory Account receivable Bank 10,000 5,000 1 400 78 000 2,100 6,800 4,000 7 300 72 200 5 000 5 000 10,000 6,000 Accumulated depreciation Plant and machinery Furniture and fittings Share capital Ordinary share capital Preference share capital Retained profits 12 debentures 50,000 5 000 7 000 25,000 10,000 5 000 10 000 Account payable 6 000 78,000 6 200 72,200 50 000 25,000 Number of ordinary shares

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Given below are the account balances of WAX Bhd and FORK Bhd at 31 December x12. An agreement was drawn up on 1 January x13

Given below are the account balances of WAX Bhd and FORK Bhd at 31 December x12. image text in transcribed

An agreement was drawn up on 1 January x13 for the acquisition by WAX Bhd of all the assets and liabilities of FORK Bhd. The assets taken over will not include the investment in shares in WAX Bhd. Subsequently, FORK Bhd will be wound up. The terms of the agreement are:

The shareholders of FORK Bhd other than WAX Bhd are to receive seven shares in WAX for every ten shares held in Fox Bhd. The shares in WAX Bhd already held by FORK Bhd will be used as part of the settlement. It was agreed by all parties concerned that the fair value of one ordinary share of WAX Bhd for the negotiation is RM2.50.
The preference shareholders are to receive RM12,000,000 B preference shares in WAX Bhd. These shares will be issued at RM1 each.
WAX Bhd is to issue sufficient 10 percent debentures to discharge the 12 percent debentures in FORK Bhd at a premium of 5 percent.
The carrying value of all the assets in FORK Bhd is considered to reflect the fair value except for land and building, the fair value of which is RM22,000,000.

Required:

Calculate the consideration transferable to FORK Bhd.
Calculate the goodwill on acquisition of FORK Bhd.
Prepare the journal entries acquisition of FORK Bhd in the books of WAX Bhd.
Prepare the ledger accounts to close the books of FORK Bhd.
Prepare the statement of financial position of WOLF Bhd after the acquisition of FORK Bhd.

WAX Bhd RM'000 5,000 29,000 14,000 8,000 5,600 FORK Bhd RM'000 7,500 16,000 21,000 7,500 Intangibles Plant and machinery (cost) Land and building (cost) Fumiture and fittings (cost) Investment in shares of FORK (5,000,000 shares) Investment in shares of WAX (2,000,000 shares) Inventory Account receivable Bank 10,000 5,000 1.400 78.000 2,100 6,800 4,000 7.300 72.200 5.000 5.000 10,000 6,000 Accumulated depreciation Plant and machinery Furniture and fittings Share capital Ordinary share capital Preference share capital Retained profits 12% debentures 50,000 5.000 7 000 25,000 10,000 5.000 10.000 Account payable 6.000 78,000 6.200 72,200 50.000 25,000 Number of ordinary shares