P 1-3 Journal entries and balance sheet for an acquisition On January 2, 2011, Par Corporation issues its own $10 par common stock for all the outstanding stock of Sin Corporation in an acquisition. Sin is dissolved. In addition, Par pays $40,000 for registering and issuing securities and $60,000 for other costs of combination. The market price of Par's stock on January 2, 2011, is $60 per share. Relevant balance sheet information for Par and Sin Corporations on December 31, 2010, just before the combination, is as follows (in thousands): Sin Historical Cost $ 20 60 180 40 Par Historical Cost $ 240 100 200 160 1,300 $2,000 $ 400 1,000 400 200 Cash Inventories Other current assets Land Plant and equipment--net Total assets Liabilities Capital stock, $10 par Additional paid-in capital Retained earnings Total liabilities and owners' equity Sin Fair Value $ 20 120 200 200 700 $1,240 $ 100 400 S700 S100 $2,000 $700 REQUIRED 1. Assume that Par issues 25,000 shares of its stock for all of Sin's outstanding shares a. Prepare journal entries to record the acquisition of Sin. b. Prepare a balance sheet for Par Corporation immediately after the acquisition 2. Assume that Par issues 15.000 shares of its stock for all of Sin's outstanding shares a. Prepare journal entries to record the acquisition of Sin. b. Prepare a balance sheet for Par Corporation immediately after the acquisition