On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buck Ltd issued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of Eldorado Ltd. The costs of issuing the shares by Quick Buck Ltd cost $1,600.

At this date the statement of financial position of Eldorado Ltd was as follows:

Machinery

Fixtures & fittings

Vehicles

Current assets

Current liabilities

Total net assets

Share capital (80,000 shares at $1.00 per share) General reserve

Retained earnings

Total equity

Carrying amount $40,000

60,000

35,000

10,000 (16,000) $129,000 $80,000 20,000 29,000 $129,000

Fair value $67,000 68,000 35,000 12,000 (18,000)

Required:

Prepare the journal entries in the records of Quick Buck Ltd at 1 July 2019 for the acquisition.