BOOGIE MUSICAL CORPORATION
Balance Sheet
December 31, 20X5
Assets				Liabilities & Equities
Cash	$	27,000		Accounts Payable	$	44,000
Accounts Receivable		86,000		Notes Payable		53,000
Allowance for Uncollectible Accounts		(1,600	)	Mortgage Payable		180,000
Inventory		207,000		Bonds Payable		180,000
Plant & Equipment		991,000		Capital Stock ($11 par)		493,000
Accumulated Depreciation		(176,000	)	Premium on Capital Stock		900
Other Assets		26,000		Retained Earnings		208,500
Total Assets	$	1,159,400		Total Liabilities & Equities	$	1,159,400

TOOT-TOOT TUBA COMPANY
Balance Sheet
December 31, 20X5
Assets				Liabilities & Equities
Cash	$	500		Accounts Payable	$	9,200
Accounts Receivable		22,000		Notes Payable		24,000
Allowance for Uncollectible Accounts		(800	)	Mortgage Payable		61,000
Inventory		80,400		Bonds Payable		115,000
Plant & Equipment		466,000		Capital Stock ($50 par)		81,000
Accumulated Depreciation		(234,000	)	Premium on Capital Stock		139,000
Other Assets		26,200		Retained Earnings		(68,900	)
Total Assets	$	360,300		Total Liabilities & Equities	$	360,300

In preparation for a possible business combination, a team of experts from Boogie Musical made a thorough examination and audit of Toot-Toot Tuba. They found that Toot-Toots assets and liabilities were correctly stated except that they estimated uncollectible accounts at $2,400. The experts also estimated the market value of the inventory at $45,000 and the market value of the plant and equipment at $515,000. The business combination took place on January 1, 20X6, and on that date Boogie Musical acquired all the assets and liabilities of Toot-Toot Tuba. On that date, Boogies common stock was selling for $55 per share.

Required:

Record the combination on Boogies books assuming that Boogie issued 8,800 of its $11 par common shares in exchange for Toot-Toots assets and liabilities. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

References

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Journal EntriesDifficulty: 3