• 2 shares in Tom Ltd for every 5 shares in Jerry Ltd. Jerry Ltd had one million shares outstanding. The market value of Tom Ltd.'s shares was $2.20 at the transfer date. Share price of Jerry Ltd was $0.50 at the transfer date. Share issue expenses paid were $1,000.. Tom Ltd to pay sufficient cash to Jerry Ltd to settle its liabilities. A piece of vacant land valued at $500,000 (currently recorded at $350,000) in Tom's books was to be transferred to Jerry Ltd as part settlement of the purchase consideration.

• 2 shares in Tom Ltd for every 5 shares in Jerry Ltd. Jerry Ltd had one million shares outstanding. The market value of Tom Ltd.'s shares was $2.20 at the transfer date. Share price of Jerry Ltd was $0.50 at the transfer date. Share issue expenses paid were $1,000.. Tom Ltd to pay sufficient cash to Jerry Ltd to settle its liabilities. A piece of vacant land valued at $500,000 (currently recorded at $350,000) in Tom's books was to be transferred to Jerry Ltd as part settlement of the purchase consideration.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Al Khuwair Co. purchased a truck for RO 5,000 by issuing 200 shares of RO 10 par value shares for RO 25 per share. Prepare the journal entry for this transaction
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