Question 4 (15 marks) On 1 July 2019, Gail Ltd acquired all the issued shares of Ray Ltd for $90 000. The financial statements of Ray Ltd showed the equity of Ray Ltd at that date to be: Share capital 10000 $5 shares $50,000 General reserve 25000 Retained eantings 15000 All the assets and liabilities of Ray Ltd were recorded at amounts equal to their fair values at that date. During the year ending 30 June 2020, Ray Ltd undertook the following actions. 0 On 1 January 2020, transferred $5 000 from the general reserve existing at 1 July 2019 to retained eamings. Required (a) Prepare the pre-acquisition entries at 1 July 2019. (b) Prepare the pre-acquisition entries at 30 June 2020. Response Click or tap here to enter text