[Appendix] Journal entries to record pooling business combinations Pam and Sun Corporations entered into a business combination accounted for as a pooling of interests in which Sun was dissolved. Net assets and stockholders’ equities of the two companies immediately before the pooling follow (in thousands):

Pam Sun Net assets $1,000 $800 Capital stock, $10 par 400 200 Additional paid-in capital 200 300 Total paid-in capital 600 500 Retained earnings 400 300 Total stockholders’ equity $1,000 $800 REQuIRED 1. Prepare the journal entry on Pam Corporation’s books to record the pooling with Sun if Pam issued 35,000,

$10 par common shares in exchange for all of Sun common shares.

2. Prepare the journal entry on Pam Corporation’s books to record the pooling with Sun if Pam issued 77,000,

$10 par common shares in exchange for all of Sun common shares.