solve this no copy paste Thomas Ltd purchased from Edison Ltd the following parcel of assets and liabilitiesrepresenting a business. In exchange for these assets and liabilities, Thomas Ltd issued50,000 shares, and the fair value of each share at the acquisition date is $2.20. After thetransaction, Edison Ltd continued in business otherwise unaffected.FairCarryingamount ($)Cost ($)value($)Accounts10 0007 000 8 000receivableMachinery40 00030 000 35 000Accounts3 0003 000 3 000payableAdditional information:Edison Ltd had not recorded an internally generated trademark. Thomas Ltd estimated thefair value of this trademark to be $60,000.Required:a) Prepare all necessary journal entries to record the above acquisition. (Using theprovided journal entry template to enter your answer; workings/calculations or narrationsarerequired.)b) If the parcel of assets and liabilities does not represent a business, list any accountsthat would be recorded in a) but should not be recognized anymore in Thomas Ltd'srecord. Explain the reason.

Business acquisition is the acquisition of the business of another business entity by other business…

Required: a) Prepare all necessary journal entries to record the above acquisition. (Using the provided journal entry template to enter your answer; workings/calculations or narrations are required.) b) If the parcel of assets and liabilities does not represent a business, list any accounts that would be recorded in a) but should not be recognized anymore in Thomas Ltd's record. Explain the reason.

Required: a) Prepare all necessary journal entries to record the above acquisition. (Using the provided journal entry template to enter your answer; workings/calculations or narrations are required.) b) If the parcel of assets and liabilities does not represent a business, list any accounts that would be recorded in a) but should not be recognized anymore in Thomas Ltd's record. Explain the reason.

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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