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Part A Company Takeover 7 Marks Jason Mathers has been writing software apps for the last few years on a part-time basis and now Apps
Part A Company Takeover 7 Marks Jason Mathers has been writing software apps for the last few years on a part-time basis and now Apps Plus wish to take over his business. An extract from his business's trial balance before the takeover appears below: 1,000 8,400 Trial Balance as at 30 September 2013 (Extract) S Accounts Receivable 14,000 Allowance for Doubtful Debts Accumulated Depreciation on Office Furniture 12,000 Office Furniture Office Equipment 20,000 Accumulated Depreciation on Office Equipment Bank 10,000 GST Payable Accounts Payable Loan 4,200 5,300 6,000 10,000 The Takeover Agreement states that Apps Plus will take over all the assets and liabilities of Jason's business at carrying amount, except for the following: The agreed value for Accounts Receivable is $12,000. GST payable is not to be taken over. The agreed value for the Office Equipment is $15,000. Jason's business will be taken over for $40,000. The consideration for Jason's business will be as follows: 10,000 $3 shares to be issued on 1 October 2013. The balance to be paid in cash on 30 November 2013. Required: Prepare the General Journal entries to record the takeover and the settlement. Dates must be shown but narrations are not required. Apps Plus General Journal Date Particulars Debit Credit (7 Marks)
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