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On January 1 , 2 0 X 2 , Prost Company acquired all of SKK Corporation's assets and liabilities by issuing 2 5 , 6
On January X Prost Company acquired all of SKK Corporation's assets and liabilities by issuing shares of its $ par value
common stock. At that date, Prost shares were selling at $ per share. Historical cost and fair value balance sheet data for SKK at the
time of acquisition were as follows:
Prost paid legal fees for the transfer of assets and liabilities of $ Prost also paid audit fees of $ and listing application
fees of $ both related to the issuance of new shares.
Required:
Prepare the journal entries made by Prost to record the business combination.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
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