advanced accounting

P1-1 Acquisition journal entries Phen Ltd. issued 500,000 common shares of $10 at par and paid $1,000,000 for the net assets of Sung Ltd. on August 17, 2014. The market value of Phen Ltd.'s stocks was $20 per share at the time. Sung Ltd. was dissolved immediately after the acquisition. The information related to Sung Ltd.'s net assets is as follows (in thousands): Book Value Fair Value Cash $ 2,000 $ 2,000 Trade receivables 800 600 Inventories 3,200 3,000 Prepaid expenses 1,000 1,000 Land 6,000 6,800 Building-net 10,000 10,100 Equipment-net 3,500 3,000 Trade payable 1,300 1,500 Notes payable 4,300 4,600 Bonds payable 6,600 7,100 Common stock, $5 par 5,300 Retained Earnings 9,000 REQUIRED: Prepare the necessary journal entries for the acquisition