accounting 4020

The following financial statement information was prepared for Black Corporation and Stripe Company at December 31, 20x8: Balance Sheets December 31, 20X8 Black Corporation Stripe Company Cash S 70,000 s 140,000 170,000 250,000 80,000 Accounts Receivable 120,000 190,000 100,000 Inventory Land Buildings and Equipment $450,000 220,00) 220,000 $680,000 Less: Accumulated Depreciation Goodwill Total Assets 310.000) 370,000 1.080.00 720,000 S 70,000 330,000 215,000 100,000 Accounts Payable Bonds Payable Bond Premium Common Stock 10,000 150,000 120,000 170,000 60,000 Additional Paid-In Capital Retained Earnings Total Liabilities and Equities -185,000 S720.000 1080,000 Black and Stripe agreed to combine as of January 1, 20x9. In completing the merger, Black incurred security issue costs of $64,000 and merger costs of $62,000. At January 1, 20x9, book values of Stripe Company's assets and liabilities approximated market value except for inventory with a market value of $220,000, buildings and equipment with a market value of $330,000, and bonds payable with a market value of $110,000. All assets and liabilities were immediately recorded on Black's books. REQUIRED Give all journal entries that Black recorded assuming: Black issued 80,000 shares of $5 par value common stock to acquire all of Stripe's assets and liabilities in a business combination. Black's common stock was trading for $8 per share on January 1, 20X9. a