Balance sheets for Salt Company and Pepper Company on December 31, 2013, follow: Salt Pepper ASSETS Cash $95,660 128,470 137,330 647,280 $1,008,740 $ 190,160 233,640 229,251 1,202,240 $1,855,291 Receivables Inventories Plant assets Total assets EQUITIES Accounts payable Mortgage payable Common stock, $20 par value Other contributed capital Retained earnings Total equities $ 168,500 161,860 369,120 177,310 131,950 $1,008,740 $232,575 162,440 877,300 247,620 335,356 $1,855,291 Pepper Company tentatively plans to issue 32,430 shares of its $20 par value stock, which has a current market value of $34 per share net of commissions and other issue costs. Pepper Company then plans to acquire the assets and assume the liabilities of Salt Company for a cash payment of $862,900 and $294,500 in long-term 8% notes payable. Pepper Company's receivables include $55,530 owed by Salt Company. Pepper Company is willing to pay more than the book value of Salt Company assets because plant assets are undervalued by $212,300 and Salt Company has historically earned above-normal profits. Prepare a pro forma balance sheet showing the effects of these planned transactions. (If an amount reduces the account balance then enter with negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).) PEPPER COMPANY Pro Forma Balance Sheet Giving Effect to Proposed Issue of Common Stock and Note Payable for All of the Common Stock of Salt Company under Purchase Accounting, December 31, 2013 Audited Pro Forma Balance Sheet Adjustments Balance Sheet Cash $190,160 335380 1 525540 Receivables 233,640 128470 362110 Inventories 229,251 T 137330 366581 Plant Assets 1,202,240 8595801 2061820 Goodwill T 211190 211190 Total Assets 1,855,291 3527241 Accounts Payable 232,575 222M 112970 345545 Notes Payable, 8% 0 294500 294500 Mortgage Payable 162,440 161860 324300 Common Stock, $20 par 877,300 1979920 Additional Paid-in Capital 247,620 | DEGI 247620 Retained Earnings 335,356 335356 Total Liabilities and Equity 1,855,291 3527241