P1-5 Journal entries and balance sheet for an acquisition Pam Corporation paid $10,000,000 for Sun Corporation's voting common stock on January 2, 2016, and sun was dissolved. The purchase price consisted of 200.000 shares of Pam's common stock with a market value of $8,000,000, plus $2,000,000 cash. In addition, Pam paid $200,000 for registering and issuing the 200,000 shares of common stock and $400,000 for other costs of combination. Balance sheet infor- mation for the companies immediately before the acquisition is summarized as follows (in thousands): 720 Cash Accounts receivable-net Notes receivable-net Inventories Other current assets Land Buildings-net Equipment-net Total assets Accounts payable Mortgage payable-10% Capital stock, $10 par Other paid-in capital Retained earnings Total equities Pam Book Value $ 12,000 5,200 6,000 10,000 2,800 8,000 36,000 40,000 $120,000 $ 4,000 20,000 40,000 32,000 24,000 $120,000 Sun Book Value Fair Value $ 960 $ 960 1,440 1,440 1,200 1,200 1,680 2,000 800 400 800 2,400 4,800 3,200 2,400 $12,000 $14,400 $ 1,200 $ 1,200 2,400 4,000 2,400 1,600 $12,000 REQUIRED 1. Prepare journal entries for Pam Corporation to record its acquisition of Sun Corporation, including all allocations to individual asset and liability accounts. 2. Prepare a balance sheet for Pam Corporation on January 2, 2016, immediately after the acquisition and dissolution of Sun