Reed Company exchanged shares of its $ 1 par common stock for all of the assets and liabilities of Bradford Corporation in a merger treated as a pooling of interests. Immediately prior to the combination, Bradford's balance sheet appeared as follows:

Before the combination, Reed reported additional paid-in capital of \(\$ 350,000\) and retained earnings of \(\$ 700,000\).
\section*{Required}
Prepare the journal entries that would appear on Reed's books to record the combination if Reed issued the following number of shares in the combination:

a. 450,000 shares.

b. 600,000 shares.

c. \(1,100,000\) shares.

Transcribed Image Text:

Current Assets Plant and Equipment Total Assets Assets Liabilities and Equities $ 600,000 1,610.000 $2.210,000 Current Liabilities Long-Term Debt $ 110.000 1,000,000 Common Stock ($5 par) 500,000 Additional Paid-In Capital 200.000 Retained Earnings 400.000 Total Liabilities and Equities $2.210.000