Journal Entries On January 1, 20X3, PURE Products Corporation issued 12,000 shares of its $10 par value stock to acquire the net assets of Light Steel Company. Underlying book value and fair value informa- tion for the balance sheet items of Light Steel at the time of acquisition follow: Required Balance Sheet Items Balance Sheet Item Book Value Cash Accounts Receivable Inventory (LIFO basis) Land 50,000 Fair Value $ 60,000 100,000 115,000 70,000 350,000 $695,000 $ 10,000 180,000 Buildings and Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Bonds Payable Common Stock ($5 par value) Additional Paid-In Capital Retained Earnings Total Liabilities and Equities 400,000 (150,000) $ 520,000 $ 10,000 200,000 150,000 70,000 90,000 $ 520,000 Light Steel shares were selling at $18 and PURE Products shares were selling at $50 just before the merger announcement. Additional cash payments made by PURE Products in completing the acquisition were Finders fee paid to firm that located Light Steel Audit fee for stock issued by PURE Products Stock registration fee for new shares of PURE Products Legal fees paid to assist in transfer of net assets Cost of SEC registration of PURE Products shares $10,000 3,000 5,000 9,000 1,000