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Question 25 5 pts The Board of Directors of Lego War Ltd. decided to make an offer to buy a competitor, Astro's Playroom Ltd. Astro's
Question 25 5 pts The Board of Directors of Lego War Ltd. decided to make an offer to buy a competitor, Astro's Playroom Ltd. Astro's Playroom Ltd has assets of $15 million and liabilities of $7 million. The Board of Lego War Ltd offered to buy all the shares in Astro's Playroom Ltd. for $10 million by paying a cash amount of $4 million and borrowing the remainder from Big Bird Bank. Required: 1. Prepare the general journal entry to record the transaction. Include a narration. 2. Explain why the Board of Directors would pay $10 million to buy Astro's Playroom Ltd. (2+3 = 5 marks)
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