Matt Ltd was a pharmaceutical company operating in Brisbane. On 1 June 2022, Matt Ltd acquired all the assets and liabilities of Damon Ltd. In exchange for these, Matt Ltd issued 50,000 shares. Based on recent market transactions, it was determined that these shares had a fair value of $3.00 at the acquisition date.
The assets and liabilities of Damon Ltd at 1 June 2022 were as follows:
Required:
Prepare the journal entries at 1 June 2022 in the accounting records of Matt Ltd to record the acquisition of Damon Ltd. Narrations are not required.