Required information [The following information applies to the questions displayed below.] On January 4, David Company acquired all of the net assets (assets and liabilities) of William Company for $125,000 cash. The two companies merged, with David Company surviving. On the date of acquisition, William's balance sheet included the following Balance Sheet at January 4 Cash Property and equipment (net) Total assets Liabilities Common stock (par $5) Retained earnings Total liabilities and stockholders' equity William Company $ 42,000 70,000 $112,000 $ 6,000 35,000 71,000 $112,000 The property and equipment had a fair value of $69,000. William also owned an internally developed patent with a fair value of $7,000 (thus, not recorded as an asset on William's balance sheet). The book values of the cash and liabilities were equal to their fair values. 2. Prepare the journal entry that David would make to record the merger on January 4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Credit Date January 04 1 General Journal Property and equipment Patent Goodwill Debit 69,000 7,000 13,000 42,000 Cash