Pamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 20X2, in exchange for 4,400 shares of Pamrod's $16 par value common stock. Balance sheet data for both companies just before the merger are given as follows: Pamrod Manufacturing Book Value Fair Value Stafford Industries Book Value Fair Value $ $ 85,000 106,000 208,000 69,000 600,000 (234,000) $ 834,000 85,000 106,000 380,000 81,000 556,000 $ 24,000 55,000 111,000 59,000 418,000 (147,000) $ 520,000 $ 24,000 55,000 154,000 23,000 341,000 $1,208,000 $597,000 Balance Sheet Items Assets Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Total Assets Liabilities & Equities Accounts Payable Bonds Payable Common Stock: $16 par value $5 par value Additional Paid-In Capital Retained Earnings Total Liabilities & Equities $ $ $ 53,000 302,000 53,000 312,000 7,000 156,000 $ 7,000 145,000 184,000 23,000 272,000 $ 834,000 96,000 17,000 244,000 $ 520,000 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.) View transaction list Journal entry worksheet Record the acquisition of Stafford Industries' net assets. Note: Enter debits before credits. Event Credit General Journal Cash Accounts receivable Inventory Land Buildings and equipment Bond discount Goodwill Accounts payable Bonds payable Common stock Additional paid-in capital Debit 24,000 55,000 154,000 23,000 341,000 11,000 7,000 156,000 Record entry Clear entry View general journal b. Prepare a balance sheet for the combined enterprise immediately following the business combination. (Amounts to be deducted should be indicated by minus sign.) $ 60,000 PAMROD MANUFACTURING AND SUBSIDIARY Combined Balance Sheet January 1, 20X2 Liabilities and Equities $ 109,000 Accounts payable 161,000 Bonds payable 362,000 Bond discount 92,000 Common stock 941,000 Additional paid-in capital (234,000) Retained earnings Assets Cash Accounts receivable Inventory Land Buildings and equipment $ 458,000 458,000 272,000 Accumulated depreciation Goodwill Total Assets $ 1,431,000 Total Liabilities and Equities $ 790,000