PROBLEMS P1-1 Acquisition journal entries Phen Ltd. issued 500,000 common shares of $10 at par and paid $1,000,000 for the net assets of Sung Ltd. on August 17, 2014. The market value of Phen Ltd.'s stocks was $20 per share at the time. Sung Ltd. was dissolved immediately after the acquisition. The information related to Sung Ltd.'s net assets is as follows (in thousands): Book Value Hair Value Cash Trade receivables Inventories Prepaid expenses Land Building-net Equipment-nel Trade payable Noles payable Bonds payable Common stock, $5 par Retained Earnings $2,000 800 3,200 1,000 6,000 10,000 3,500 1,300 4,300 6.600 5,300 9.000 $2,000 600 3,000 1,000 6,800 10,100 3,000 1,500 4,600 7.100 REQUIRED: Prepare the necessary journal entries for the acquisilion