Pamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 20X2, in exchange for 4,200 shares of Pamrods $16 par value common stock. Balance sheet data for both companies just before the merger are given as follows:

	Pamrod Manufacturing								Stafford Industries
Balance Sheet Items	Book Value				Fair Value				Book Value				Fair Value
Assets
Cash	$	73,000			$	73,000			$	29,000			$	29,000
Accounts Receivable		106,000				106,000				51,000				51,000
Inventory		204,000				382,000				112,000				153,000
Land		61,000				97,000				51,000				28,000
Buildings & Equipment		611,000				545,000				408,000				343,000
Less: Accumulated Depreciation		(234,000	)							(147,000	)
Total Assets	$	821,000			$	1,203,000			$	504,000			$	604,000
Liabilities & Equities
Accounts Payable	$	67,000			$	67,000			$	7,000			$	7,000
Bonds Payable		304,000				314,000				150,000				141,000
Common Stock:
$16 par value		194,000
$5 par value										92,000
Additional Paid-In Capital		27,000								18,000
Retained Earnings		229,000								237,000
Total Liabilities & Equities	$	821,000							$	504,000

Pamrod shares were selling for $150 on the date of acquisition. Required:

a. Prepare a Journal entry to record the acquisition in Pamrods books. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare a balance sheet for the combined enterprise immediately following the business combination. (Amounts to be deducted should be indicated by minus sign.)

No Event Credit A 1 Answer is complete but not entirely correct. General Journal Cash Accounts receivable Inventory Land Buildings and equipment Bond discount Goodwill Accounts payable Bonds payable Common stock Additional paid-in capital Debit 29,000 51,000 153,000 28,000 343,000 5,000 125,000 7,000 150,000 67,200 520,000 Answer is not complete. PAMROD MANUFACTURING AND SUBSIDIARY Combined Balance Sheet January 1, 20X2 Liabilities and Equities Accounts payable Bonds payable Discount Common stock Additional paid-in capital Retained earnings Assets Cash Accounts receivable Inventory Land Buildings and equipment Accumulated depreciation Goodwill 0 Total Assets $ 0 Total Liabilities and Equities $ 0