Pintime Industries Incorporated entered Into a business combination agreement with Sydrolized Chemical Corporation Pintime Industries Incorporated entered Into a business combination agreement with Sydrolized Chemical Corporation

$($SCC$)$ to ensure an uninterrupted supply of key raw materlals and to realize certain economies from combining the

operating processes and the marketing efforts of the two companles. Under the terms of the agreement, Pintime issued

$180,600$ shares of its $$1$ par common stock in exchange for all of SCC$\text{'}$s assets and liablities. The Pintime shares then were

distributed to SCC$\text{'}$s shareholders, and SCC was liquidated.

Immediately prior to the combination, SCC$\text{'}$s balance sheet appeared as follows, with falr values also indicated:

Immediately prior to the combination, Pintime's common stock was selling for $$15$ per share. Pintime Incurred direct costs

of $$145,000$ in arranging the business combination and $$45,000$ of costs associated with registering and issuling the

common stock used in the combination. Required:

a$.$ Prepare all journal entries that Pintime should have entered on its books to record the business combination.

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

Journal entry worksheet

Record the payment of legal fees.

Note: Enter debits before credits.

Journal entry worksheet

A

$B$

C

Record the costs of issuing stock.

Note: Enter debits before credits. Journal entry worksheet

A

B

Record the purchase of SCC$.$

Note: Enter debits before credits.

$\backslash$table$[[$Event$,$General Journal,Debit,Credit$],[3,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$ b$.$ Prepare all journal entries that should have been entered on SCC$\text{'}$s books to record the combination and the distribution of the stock recelved.

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

Journal entry worksheet

A

$B$

C

Record the sale of assets and liabilities.

Note: Enter debits before credits.

$\backslash$table$[[$Event$,$General Journal,Debit,Credit$],[1,?,,],[,?,,],[,-,,],[,-,,],[,-,,],[,?,,],[,?,,],[,-,,],[,-,,],[,$F$,,],[,-,,],[,?,,],[,-,,],[,?,,],[,-,,],[,-,,],[,?,,],[,$F$,,],[,?,,],[,?,,]]$Journal entry worksheet

A

B

C

Record the retirement of Treasury Stock.

Note: Enter debits before credits.

Journal entry worksheet

A

B

C

Record the retirement of SCC stock and distribution of Pintime Industries

stock.

Note: Enter debits before credits.

$($SCC$)$ to ensure an uninterrupted supply of key raw materlals and to realize certain economies from combining the

operating processes and the marketing efforts of the two companles. Under the terms of the agreement, Pintime issued

$180,600$ shares of its $$1$ par common stock in exchange for all of SCC$\text{'}$s assets and liabilitles. The Pintime shares then were

distributed to SCC$\text{'}$s shareholders, and SCC was liquidated.

Immediately prior to the combination, SCC$\text{'}$s balance sheet appeared as follows, with falr values also indicated:

Immediately prior to the combination, Pintime's common stock was selling for $$15$ per share. Pintime Incurred direct costs

of $$145,000$ in arranging the business combination and $$45,000$ of costs assoclated with registering and issuing the

common stock used in the combination.