On January 1, 2011, Petron Corporation acquires the net assets of the Shell Corporation for P625,000 cash. Prior to the business combination, Shell Corporation has the following statement of financial position (pls see attached photo)

The carrying values of Shells identifiable net assets approximated their fair value, except for inventories and property, plant, and equipment, which have fair market values of P175,000 and P375,000 respectively. To effect the business combination, Petron paid its legal advisers P6,250 representing their professional fees.

Required:

1. Prepare journal entries to record the acquisition on the Petron Corporations books. Provide computations to support your entry.

2. Prepare journal entries to record the sale on the books of Shell Corporation and the subsequent total liquidation of the corporation.

it's not incomplete. all the information are included

Shell Corporation Statement of Financial Position January 1, 2011 Assets Liabilities and Equity Current assets: Current Liabilities P 62,500 Accounts Receivable P150,000 Shareholders' equity: Inventories 125,000 P275,000 Ordinary Share Property, Plant and Capital, P10 P250,000 par Equipment 350,000 Accumulated Profits 312,500 562,500 Total Assets P625,000 Total Liabilities and P625,000 Equity