Pan Book Sis Book Sis Fair Value Value Value Current liabilities $ 320 $ 60 $ 60 Other liabilities 160 100 80 Common stock, $10 par 840 400 Retained earnings 200 80 Total liabilities and $1,520 $640 owners' equity REQUIRED: Prepare all journal entries on Pan's books to account for the acquisition.E 1-5 Journal entries to record an acquisition with direct costs and fair value/book value differences On January 1, Pan Corporation pays $400,000 cash and also issues 36,000 shares of $10 par common stock with a market value of $660,000 for all the outstanding common shares of Sis Corporation. In addition, Pan pays $60,000 for registering and issuing the 36,000 shares and $140,000 for the other direct costs of the business combination, in which Sis Corporation is dissolved. Summary balance sheet information for the companies 'mmediately before the merger is as follows (in thousands): Pan Book Sis Book Sis Fair Value Value Value Cash $ 700 $ 80 $ 80 Inventories 240 160 200 Other current assets 60 40 40 Plant assets-net 520 360 560 Total assets $1,520 $640 $880