On January 1, 2019, 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, 2029, and a yield rate of 12%. Balance sheets for Perez and Stalton (as well as fair value data) on January 1, 2019, 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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Stalton Perez Book Value Book Value Fair Value $ 250,000 $114,000 $114,000 Cash Receivables 352,700 150,000 135,000 Inventories 310,000 848,300 232,000 Land 700,000 100,000 315,000 Buildings 950,000 410,000 54,900 Accumulated depreciation-buildings (325,000) (170,500) Equipment 262,750 136,450 39,450 Accumulated depreciation-equipment (70,050) (90,450) $2,968,700 $881,500 Total assets $968,350 $ 292,700 $ 95,300 $ 95,300 Current liabilities Bonds payable, 8% due 1/1/2024, Interest payable 6/30 and 12/31 300,000 260,000 Common stock, $15 par value 1,200,000 Common stock, $5 par value 236,500 Other contributed capital 950,000 170,000 Retained earnings 526,000 79,700 Total equities $2,968,700 $881,500