P1-3 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 S60 per share. Relevant balance sheet information for Par and Sin Corporations on December 31, 2010. just before the combination, is as follows (in thousands): Par Sin Sin Historical Cost Historical Cost Fair Value Cash $ 240 $ 20 S 20 Inventories 100 60 120 Other current assets 200 180 200 Land 160 40 200 Plant and equipment-net 1.300 400 700 Total assets $2.000 $700 S1,240 Liabilities $ 400 $100 $ 100 Capital stock, S10 par 1.000 200 Additional paid-in capital 100 Retained earnings 200 300 Total liabilities and owners' equity $2.000 $700 400 REQUIRED 1. Assume that Par issues 25,000 shares of its stock for all of Sin's outstanding shares. a. Prepare joumal entries to record the acquisition of Sin. 1. 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 joumal entries to record the acquisition of Sin. b. Prepare a balance sheet for Par Corporation immediately after the acquisition