Accounting question: I'm asking this question in a different way. If a company is acquiring another company at the end of 2021 for $1Billion, and is paying for this acquisition using $700Million in term loans and $300 Million in equity issuance,

- what figures on the income statement, balance sheet and cashflow statements would I need to adjust if i'm preparing 2022 pro forma statements?

- Does the debt increase by $700MM and shareholders' equity increase by $300MM? and if that is the case, then how do the assets increase so that Assets = Liability + Equity??

- if Shareholder equity prior to acquisition (in 2021) was $10MM, then after this acquisition, is it as simple as adding $300MM to $10MM? i'm trying to figure out how to balance the Assets = Liability + Equity equation after increasing debt by $700MM? where is the offsetting asset item??