Pamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 202, in exchange for 4,300 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 Pamrod Manufacturing Book Value Fair Value Stafford Industries Book Value Fair Value 87,000 $ 20,000 $ 20,000 107,000 51,000 395,000 113,000 83,000 45,000 51,000 160,000 28,000 } 555,000 415,000 341,000 (140,000) $1,227,000 $ 504,000 $600,000 $ 52,000 311,000 52,000 321,000 8,000 155,000 $ 8,000 144,000 196,000 Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Total Assets Liabilities & Equities Accounts Payable Bonds Payable Common Stock: $16 par value $ 87,000 107,000 213,000 55,000 606,000 (245,000) $ 823,000 $10 par value Additional Paid-In Capital Retained Earnings Total Liabilities & Equities 27,000 237,000 $ 823,000 Pamrod shares were selling for $150 on the date of acquisition. 81,000 20,000 240,000 $ 504,000 Required: a. Prepare a Journal entry to record the acquisition in Parrod's books. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event General Journal A 1 Cash Accounts receivable Inventory Land Buildings and equipment Bond discount Goodwill Accounts payable Bonds payable Common stock Additional paid-in capital Debit Credit 20,000 51,000 160,000 28,000 341,000 b. Prepare a balance sheet for the combined enterprise immediately following the business combination. (Amounts to be deducted should be indicated by minus sign.) Assets Cash Accounts receivable Inventory Land Buildings and equipment Accumulated depreciation Goodwill PAMROD MANUFACTURING AND SUBSIDIARY Combined Balance Sheet January 1, 20x2 Liabilities and Equities Accounts payable Bonds payable Common stock Additional paid-in capital Retained earnings 0 Total Assets $ 0 Total Liabilities and Equities $ 0