On January 1, 2014, Perez Company acquired all the assets and assumed all the liabilities of Stalton Company and merged Stalton into Perez. In exchange for the net assets of Stalton, Perez gave its bonds payable with a maturity value of $600,000, a stated interest rate of 10%, interest payable semiannually on June 30 and December 31, a maturity date of January 1, 2024, and a yield rate of 12%.

Balance sheets for Perez and Stalton (as well as fair value data) on January 1, 2014, were as follows:

	Perez	Stalton
	Book Value	Book Value	Fair Value
Cash	$ 250,000	$114,000	$114,000
Receivables	352,700	150,000	135,000
Inventories	848,300	232,000	310,000
Land	700,000	100,000	315,000
Buildings	950,000	410,000	54,900
Accumulated depreciation - buildings	(325,000)	(170,500)
Equipment	262,750	136,450	123,700
Accumulated depreciation - equipment	(70,050)	(90,450)	(84,250)
Total assets	$ 2,968,700	$ 881,500	$ 968,350
Current liabilities	$ 292,700	$95,300	$95,300
Bonds payable, 8% due 1/1/2019, Interest payable 6/30 and 12/31		300,000	260,000
Common stock, $15 par value	1,200,000
Common stock, $5 par value		236,500
Other contributed capital	950,000	170,000
Retained earnings	526,000	79,700
Total equities	$ 2,968,700	$ 881,500

Required:

Prepare the journal entry on the books of Perez Company to record the acquisition of Stalton Company's assets and liabilities in exchange for the bonds.