On 1 July 2020, Sydney Ltd took control of the assets and liabilities of Perth Ltd. At this date the statement of financial position of Perth Ltd was as follows:

Machinery $40,000 $67,000

Fixtures & fittings 60,000 68,000

Vehicles 35,000 35,000

Current assets 10,000 12,000

Current liabilities (16,000) (18,000)

Total net assets $129,000

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

General reserve 20,000

Retained earnings 29,000

Total equity $129,000

Prepare the journal entries in the records of Sydney Ltd at 1 July 2020 in the following situation, assuming the costs of issuing the shares by Sydney Ltd cost $1,600.

1. Sydney Ltd issued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of Perth Ltd