Assignment 1 Journal entries and balance sheet for an acquisition On January 2, 2011. Al-Bayan Corporation issues 25,000 shares of its own 510 par common stock for all the outstanding stock of Al-Eshraq Corporation in an acquisition. Al-Eshraq is dissolved. In addition, Al-Bayan pays $40,000 for registering and issuing securities and $60,000 for other costs of combination. The market price of Al-Bayan's stock on January 2, 2011, is 560 per share. Relevant balance sheet information for Al-Bayan and Al-Eshraq Corporations on December 31, 2010, just before the combination, is as follows (in thousands): Al-Bayan Al-Eshraq Al-Eshraq Historical Cost Historical Cost Fair Value Cash $240 $20 $20 Inventories 100 60 120 Other current assets 200 180 200 Land 160 40 200 Plant and equipment-net 1,300 400 700 Total assets $2,000 $700 $1,240 Liabilities $400 $100 $100 Capital stock, $10 par 1,000 200 Additional pald-in capital 400 100 Retained earnings 200 300 Total liabilities and owners' equity $2,000 $700 REQUIRED: a. Prepare journal entries to record the acquisition of Al-Eshraq. b. Prepare a balance sheet for Al-Bayan Corporation immediately after the acquisition