Guile Ltd acquired 80% of the ordinary shares of Vega Ltd on 30 June 2019. The cost of acquisition was $1.60 cash per share of Vega plus one share in Guile for every three shares acquired in Vega. Half the cash is payable at acquisition, and the other half is payable in one year's time. Guile's incremental borrowing rate is 6% (discount factor: 0.9434). Shares of Guile and Vega were trading at $3.50 and $1.30 respectively on 30 June 2019. The cost of issuing shares in Guile Ltd was $7,000.

Required:

Prepare journal entries to record the acquisition of vega Ltd by Guile Ltd and the Deferred payment.

Due date: Week 4 in your registered class Marks and percentages: This assessed coursework will be marked out of 15 marks and contributes towards 5% to your assessment. Part A (5 marks) Guile Lid acquired 80% of the ordinary shares of Vega Lid on 30 June 2019. The cost of acquisition was $1.60 cash per share of Vega plus one share in Guile for every three shares acquired in Vega. Half the cash is payable at acquisition, and the other half is payable in one year's time. Guile's incremental borrowing rate is 6% (discount factor: 0.9434). Shares of Guile and Vega were trading at $3.50 and $1.30 respectively on 30 June 2019. The cost of issuing shares in Guile Ltd was $7,000. Guile Ltd Balance sheet as at 30 June 2019 $ Assets Cash at Bank 230 000 Other assets 370 000 Net assets HIRAUOSAM 600 000 Equity Share capital vieTovinU 300 000 ordinary shares, fully paid 450 000 Retained profits 150 000 Total Equity 625 000 Vega Ltd Balance sheet as at 30 June 2019 $ Assets Cash at Bank 65 000 Other assets 160 000 Total assets 220 000 Liabilities Bank Loan 25 000 Net assets 195 000 Equity Share capital 120 000 ordinary shares, fully paid 120 000 Retained profits 75 000 Total Equity 195 000 Required: Prepare journal entries to record the acquisition of Vega Lid by Guile Lid and the deferred payment