Business Combination Journal Entries

Example: Point Corporation acquires all the assets and assumes all the liabilities of Sharp Company in a statutory merger by issuing $10,000$ shares of $$10$ par common stock to Sharp $($market value $$610,000.$

Added Facts: Point incurs legal and appraisal fees of $$40,000$ in connection with the combination and stock issue costs of $$25,000.$

Prepare Journal Entries to Record Acquisition of Sharp:

Point records acqulsition of Sharps:

Debit

Credit

Credit