On January 1, 2024, Perez Company acquired all the assets and assumed all the liabilities of Stalton Company and merged Stalton into Perez. In exchange for the net assets of Stalton, Perez gave its bonds payable with a maturity value of $600,000, a stated interest rate of 10%, interest payable semiannually on June 30 and December 31, a maturity date of January 1, 2034, and a yield rate of 12%. Balance sheets for Perez and Stalton (as well as fair value data) on January 1, 2024, were as follows:

Required:
Prepare the journal entry on the books of Perez Company to record the acquisition of Stalton Company’s assets and liabilities in exchange for the bonds.

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Cash Receivables Inventories Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Total assets Current liabilities Bonds payable, 8% due 1/1/2034, Interest payable 6/30 and 12/31 Common stock, $15 par value Common stock, $5 par value Other contributed capital Retained earnings Total equities Perez Book Value $ 250,000 352,700 848,300 700,000 950,000 (325,000) 262,750 (70,050) $2,968,700 $ 292,700 1,200,000 950,000 526,000 $2,968,700 Stalton Book Value $114,000 150,000 232,000 100,000 410,000 (170,500) 136,450 (90,450) $881,500 $ 95,300 300,000 236,500 170,000 79,700 $881,500 Fair Value $114,000 135,000 310,000 315,000 54,900 39,450 $968,350 $ 95,300 260,000