Problem 13-9 Peter Industries, Inc., entered into a business combination agreement with Honey Chemical Corporation (HCC). Under the terms of the agreement, Peter Industries issued 180.000 shares of its P1 par common stock in exchange for all the assets and liabilities of HCC. The Peter Industries shares then were distributed to the sharcholders of HCC, and ICC was liquidated. Immediately prior to the combination, HCC's statement of financial position appeared as follows, with fair values also indicated: Book Values Fair Values Assets Cash Accounts Receivable Less: Allowance for Bad Debts Inventory Long-Term Investments Land Rolling Stock Plant and Equipment Less: Accumulated Depreciation Palepis Special Licenses Total Assets P 28,000 258,000 6,500) 381.000 150,000 35,000 130,000 2,425,000 ( 614,000) 125,000 95,800 P 3.027,300 P28,000 251,500 395,000 175,000 100,000 63,000 2,500,000 500,000 100.000 P4.112.500 P 137,200 500,000 100,000 1.000.000 40.000) P 1,697 200 P 137,200 520,000 95,000 950,000 P1,702,200 Liabilities: Currear Payables Mortgages Payable Equipment Trust Notes Debeatures Payable Less: Discount on Debentures Total Liabilities Stockholders' Equity: Common Stock (P5 par) Additional Paid-In Capital from Common Stock Additional Paid To Capital from Retirement of Preferred stock Retained Earnings Less: Troasury Stock (1,500 shares) Total Llabilities and Equity 600,000 500,000 22,000 220,100 ( 12,000) P 3,027,300 Problem 13-9, Continued Immediately prior to the combination Peter Industries common stock was selling for P14 per share. Peter Industries incurred professional fees of P135,000 in arranging the business combination and P42,000 of stock issue costs. 2. Required: Prepare all journal entries that Peter Industries should have entered on its books to record the acquisition. b. Preseni all journal entries that should have been entered on the books of HCC 0 record the combination and the distribution of the stock received