Part 2 On 1 July 2017, Butternut Ltd acquired all of the assets and liabilities of Pumpkin Ltd. At this date the statement of financial position of Pumpkin Ltd included the following assets and liabilities: Carrying amount $100,000 75,000 55,000 10,000 Fair value $103 000 85,000 59,000 12,000 Plant & equipment Fixtures & fittings Vehicles Inventory Accounts receivable Prepayments Trade payables Bank overdraft 15,000 15,000 6,000 (16,000) (2,000) 6,000 (18,000) (2,000) Required Prepare the journal entries in the records of Butternut Ltd at 1 July 2017 in the following situations, assuming the costs of issuing the shares by Butternut Ltd were $4 000: a) Butternut Ltd paid $90 000 cash, and issued 50 000 shares having a fair value of $3.60 per share, in exchange for the net assets of Pumpkin Ltd. b) Butternut Ltd paid $90 000 cash, and issued 50 000 shares having a fair value of $3.30 per share, in exchange for the net assets of Pumpkin Ltd. Explain why the journal entries in each case are needed