Pamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 20X2, in exchange

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Pamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 20X2, in exchange for 4,000 shares of Pamrod’s

$20 par value common stock. Balance sheet data for both companies just before the merger are given as follows:

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Pamrod shares were selling for $150 on the date of acquisition.


Required

Prepare the following:

a. Journal entries to record the acquisition on Pamrod’s books.

b. A balance sheet for the combined enterprise immediately following the business combination.

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Related Book For  book-img-for-question

Advanced Financial Accounting

ISBN: 9781265042615

13th International Edition

Authors: Theodore E. Christensen, David M. Cottrell, Cassy Budd

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