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Hello can you help with the following: 1) Record the payment for legal fees 2) Record cost of issuing stock 3) record purchase of SSK
Hello can you help with the following:
1) Record the payment for legal fees
2) Record cost of issuing stock
3) record purchase of SSK Corp
On January 1, 20X2, Prost Company acquired all of SKK Corporation's assets and liabilities by issuing 25,500 shares of its $6 par value common stock. At that date, Prost shares were selling at $24 per share. Historical cost and fair value balance sheet data for SKK at the time of acquisition were as follows: Fair Value $ 24,000 104,000 461,000 Balance Sheet Item Cash & Receivables Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Notes Payable Common Stock ($10 par value) Retained Earnings Total Liabilities & Equities Historical Cost $ 24,000 101,000 616,000 (221, 000) $ 520,000 $ 56,000 69,000 168,000 227,000 $ 520,000 $589,000 $ 56,000 67,000 Prost paid legal fees for the transfer of assets and liabilities of $15,000. Prost also paid audit fees of $23,000 and listing application fees of $16,000, both related to the issuance of new shares. Required: Prepare the journal entries made by Prost to record the business combination. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Step by Step Solution
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