Pamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 20X2, in exchange for 4,000 shares of Pamrods $20 par value common stock. Balance sheet data for both companies just before the merger are given as follows:

Pamrod Manufacturing Stafford Industries Balance Sheet ItemsBook ValueFair Value Book ValueFair Value Assets Cash$70,000 $70,000 $30,000 $30,000 Accounts Receivable 100,000 100,000 60,000 60,000 Inventory 200,000 375,000 100,000 160,000 Land 50,000 80,000 40,000 30,000 Buildings and Equipment 600,000 540,000 400,000 350,000 Less: Accumulated Depreciation (250,000) (150,000) Total Assets$770,000 $1,165,000 $480,000 $630,000 Liabilities and Equities Accounts Payable$50,000 $50,000 $10,000 $10,000 Bonds Payable 300,000 310,000 150,000 145,000 Common Stock: $20 par value 200,000 $5 par value 100,000 Additional Paid-In Capital 40,000 20,000 Retained Earnings 180,000 200,000 Total Liabilities and Equities$770,000 $480,000

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

Required:

Prepare a Journal entry to record the acquisition in Pamrod's books.

Prepare a balance sheet for the combined enterprise immediately following the business combination.

Prepare a Journal entry to record the acquisition in Pamrod's books.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Journal entry worksheet

• Record the acquisition of Stafford Industries' net assets.

Note: Enter debits before credits.

EventGeneral JournalDebitCredit1

Prepare a balance sheet for the combined enterprise immediately following the business combination.

Note: Amounts to be deducted should be indicated by minus sign.

PAMROD MANUFACTURING AND SUBSIDIARYCombined Balance SheetJanuary 1, 20X2Assets Liabilities and Equities Total Assets Total Liabilities and Equities