(b) Assume that Davis issued 150,000 ordinary shares, with a market value of $9.90 per share, to Bagley for its net assets. Legal fees associated with issuing these shares amounted to $8,500 and were paid in cash. Davis had 170,000 shares outstanding prior to the takeover. (i) Prepare the journal entries in the records of Davis to record the business combination. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the acquisition of net assets of Bagley Incorporated in Davis Inc's books. Note: Enter debits before credits. (ii) Prepare the statement of financial position of Bagley immediately after the sale. (b) Assume that Davis issued 150,000 ordinary shares, with a market value of $9.90 per share, to Bagley for its net assets. Legal fees associated with issuing these shares amounted to $8,500 and were paid in cash. Davis had 170,000 shares outstanding prior to the takeover. (i) Prepare the journal entries in the records of Davis to record the business combination. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the payment of $8,500 legal fees for the issue of 150,000 equity shares at a market value of $9.90 per share. Note: Enter debits before credits. Bagley Incorporated's statement of financial position as at July 31 , Year 4, is as follows: On August 1, Year 4, the directors of Bagley considered a takeover offer from Davis Inc., in which the corporation would sell all of its assets and liabilities. Davis's costs of investigation and drawing up the merger agreement would amount to $29,500. (b) Assume that Davis issued 150,000 ordinary shares, with a market value of $9.90 per share, to Bagley for its net assets. Legal fees associated with issuing these shares amounted to $8,500 and were paid in cash. Davis had 170,000 shares outstanding prior to the takeover. (i) Prepare the journal entries in the records of Davis to record the business combination. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the $29,500 cash paid for professional fees expense. Note: Enter debits before credits. Required: (a) Assume that Davis made a $1,485,000 cash payment to Bagley for its net assets. Prepare the journal entries in the accounting records of Davis to record the business combination. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the $29,500 cash paid for professional fees expense. Note: Enter debits before credits. Required: (a) Assume that Davis made a $1,485,000 cash payment to Bagley for its net assets. Prepare the journal entries in the accounting records of Davis to record the business combination. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the acquisition of net assets of Bagley Incorporated in Davis Inc's books. Note: Enter debits before credits