On 1 January 2021, Desert Ltd acquired all the issued shares of Island Ltd. At this date the equity of Island Ltd consisted of: Share capital - 100,000 shares issued @$5 per share $500,000 General Reserve 200,000 Asset revaluation surplus Retained earnings 100,000 50,000 In exchange for these shares, Desert Ltd agreed to pay the former shareholders of Island Ltd two shares in Desert Ltd, these having a share value of $4 per share, plus $2 cash for each share held in Island Ltd. The cost of issuing the shares were $800. Requirement: Prepare the journal entries in the records of Desert Ltd. to record these events. Show necessary workings. [Narrations are not required]