Savod Help Save & Exit Subm Pintime Industries Inc. entered into a business combination agreement with Sydrolized Chemical Corporation (SCC) to ensure an uninterrupted supply of key raw materials and to realize certain economies from combining the operating processes and the marketing efforts of the two companies Under the terms of the agreement, Pintime issued 180,300 shares of its $2 par common stock in exchange for all of SCC's assets and liabilities. The Pintime shares then were distributed to SCC's shareholders, and SCC was liquidated. Immediately prior to the combination, SCC's balance sheet appeared as follows, with fair values also indicated: Book Values Fair Values $ 28,000 233,800 $ 28,000 240,000 (6,200) 371,000 132,000 50,000 122,000 2,423,000 (596,000) 110,000 95,700 $2,977,500 385,000 157,000 96,000 47,000 2,495,000 488,000 98,200 $4,028,000 Assets Cash Accounts Receivable Less: Allowance for Bad Debts Inventory Long-Term Investments Land Rolling Stock Plant & Equipment Less: Accumulated Depreciation Patents Special Licenses Total Assets Liabilities Current Payables Mortgages Payable Equipment Trust Notes Debentures Payable Less: Discount on Debentures Total Liabilities Stockholders Equity Common Stock ($6 par) Additional Paid-In Capital from Common Stock Additional Paid-In Capital from Retirement of Preferred Stock Retained Earnings Less: Treasury Stock (1,000 shares) Total Liabilities & Equity $ 137,400 508,000 108,000 1,030,000 (50,000) $1,733,400 $ 137,400 528,000 103,000 980,000 $1,748,400 582,000 588,000 19,000 149, 100 (14,000) $2,977,500 27700 Immediately prior to the combination, Pintime's common stock was selling for $15 per share. Pintime incurred direct costs of $137,000 in arranging the business combination and $48,000 of costs associated with registering and issuing 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 (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 B Record the payment of legal fees. Note: Enter debits before credits. Debit Credit Event General Journal View general Journal Clear entry Record entry lities & Equity $2,977,500 Immediately prior to the combination, Pintime's common stock was selling for $15 per share. Pintime incurred direct costs of $137,000 in arranging the business combination and $48,000 of costs associated with registering and issuing 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 5:42 View transaction list Journal entry worksheet Journal entry worksheet Record the retirement of Treasury Stock. Note: Enter debits before credits. Debit Credit Event General Journal 2 View general journal Clear entry Record entry 60 Journal entry worksheet A B Record the retirement of SCC stock and distribution of Pintime Industries stock. Note: Enter debits before credits. Debit General Journal Event Credit 3 View general journal Clear entry Record entry