P1-35 Purchase at More than Book Value LO 1-5 Pamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 20X2, in exchange for 4,100 shares of Pamrod's $16 par value common stock. Balance sheet data for both companies just before the merger are given as follows: Balance Sheet Items. Assets Cash Accounts Receivable Inventory Land Buildings Pamrod Manufacturing Stafford Industries Book Value Fair Value. 54,000 $ 30,000 54,000 150,000 21,000 Book Value Fair Value $ 86,000 $ 86,000 $ 30,000 117,000 385,000 104,000 94,000 54,000 } 557,000 $1,239,000 414,000 (146,000) $510,000 } 341,000 Equipment Less: Accumulated Depreciation Total Assets Liabilities & Equities 117,000 205,000 64,000 610,000 (235,000) $ 847,000 Accounts Payable. Bonds Payable $ 53,000 302,000 $ 53,000 312,000 $ 10,000 153,000 $596,000 $ 10,000 141,000) Common Stock: $16 par value $5 par value Additional Paid-In Capital Retained Earnings Total Liabilities & Equities 188,000 27,000 277,000 $ 847,000 95,000 19,000 233,000 $510,000 Pamrod shares were selling for $140 on the date of acquisition. Required: a. Prepare a Journal entry to record the acquisition in Pamrod's books. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No. A Event 1 Cash Accounts receivable Inventory Buildings and equipment Land General Journal 00000 Debit 30,000 54,000 O 150,000 341,000 21,000 Credit < Prev 3 of 3 Next >