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 Stafford Industries Fair Value Book Value Fair Value Balance Sheet Items Book Value Assets $ 85,000 $ 24,000 $ 24,000 85,000 106,000 380,000 81,000 Cash $ Accounts Receivable 106,000 208,000 69,000 55,000 111,000 59,000 418,000 (147,000) 55,000 154,000 Inventory Land 23,000 341,000 Buildings & Equipment Less: Accumulated Depreciation 600,000 556,000 (234,000) Total Assets $ 834,000 $1,208,000 $ 520,000 $597,000 Liabilities & Equities $ 7,000 Accounts Payable Bonds Payable Common Stock: $ 53,000 302,000 2$ $ 53,000 312,000 7,000 156,000 145,000 $16 par value $5 par value Additional Paid-In Capital Retained Earnings 184,000 96,000 17,000 23,000 244,000 $ 520,000 272,000 Total Liabilities & Equities $ 834,000 Pamrod shares were selling for $140 on the date of acquisition. Required: a. Prepare a Journal entry to record the acquisition in Pamrod's books. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A Record the acquisition of Stafford Industries' net assets. Note: Enter debits before credits. Event General Journal Debit Credit Cash Accounts receivable Inventory Land Buildings and equipment Bond discount Goodwill 24,000 55,000 154,000 23,000 341,000 11,000 Accounts payable 7,000 Bonds payable 156,000 Common stock Additional paid-in capital Record entry Clear entry View general journal b. Prepare a balance sheet for the combined enterprise immediately following the business combination. (Amounts to be deducted should be indicated by minus sign.) PAMROD MANUFACTURING AND SUBSIDIARY Combined Balance Sheet January 1, 20X2 Assets Liabilities and Equities Cash Accounts receivable 109,000 Accounts payable 2$ 60,000 161,000 Bonds payable $ 458,000 Inventory 362,000 Bond discount 458,000 Land 92,000 Common stock Buildings and equipment Accumulated depreciation 941,000 Additional paid-in capital (234,000) Retained earnings 272,000 Goodwill Total Assets $ 1,431,000 Total Liabilities and Equities $ 790,000