2-23 (Algo) (LO 2-6a, 2-6b) The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory Land $ Buildings 231,000 822,000 2,130,000 $ 191,750 1,119,750 Customer relationships Accounts payable (104,000) 2,447,250 867,750 (104,000) Common stock (2,000,000) Additional paid-in capital Retained earnings, 1/1 (500,000) (417,500) Revenues Expenses (464,500) 303,000 Arturo Company pays $3,780,000 cash and issues 28,700 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $32,800 and Arturo pays $47,500 for legal fees to complete the transaction. Prepare Arturo's journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet > 1 2 3 Record the acquisition of Westmont Company. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 12 3 Record the legal fees related to the combination. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the payment of stock issuance costs. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit View general journal Record entry Clear entry