Question 2 Echo Beach Ltd was incorporated on 1 July 20XX, to acquire the business of Frasier Trading as a going concern, the purchase consideration being settled by the issue of 43,000, $1.00 ordinary shares and 50 7% debentures of $100 each, maturing in ten years time The assets and liabilities Frasier Trading were: Freehold Premises Plant and equipment Accumulated depreciation Inventory Accounts Receivable Allowance for Doubtful Debts Accounts Payable Bank Overdraft Echo Beach Ltd assess the fair value of assets to be acquired as: Freehold Premises Plant & equipment Inventory Accounts Receivable $ 40,000 30,000 5,000 12,500 7,500 500 18,000 2,000 $ 75,000 15,000 12,500 6,000 All liabilities of Frasier Trading were accepted at book value by Echo Beach Ltd. Prepare general journal entries in the books of Echo Beach Ltd to record: (a) The acquisition of the assets and liabilities of Frasier Trading by Echo Beach Ltd (b) The payment of the purchase consideration to Frasier Trading by Echo Beach Ltd Journal entries must comply with the requirements of Accounting Standards.