P1-3 Journal entries and balance sheet for an acquisition On January 2, 2016, Pam Corporation issues its own \$10 par common stock for all the outstanding stock of sun Corporation in an acelulsition. Sun is diseolved. In addition. Pam pays $40,000 for redistering and issuino securities and \$60,000 for other costs of combination. The market price of Pam's stock on January 2.2018 , is $60 per share. Relevant balanoe sheet information for Pam and Sun Corporations on December 31.2015 . ILst before the combination. is as follows (in thousands): Required 1. Assume that Pam issues 25,000 shares of its stock for all of Sun's outstanding shares. a. Prepare journal entries to record the acquisition of Sun. b. Prepare a balance sheet for Pam Corporation immediately after the acquisition. 2. Assume that Pam issues 15,000 shares of its stock for all of Sun's outstanding shares. a. Prepare journal entries to record the acquisition of Sun. b. Prepare a balance sheet for Pam Corporation immediately after the acquisition