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Statutory Merger-Manual preparation using Word Templates in Excel folder. Scan and upload manual worksheets to Schoology. On January 1, 2019, P Company acquired all
Statutory Merger-Manual preparation using Word Templates in Excel folder. Scan and upload manual worksheets to Schoology. On January 1, 2019, P Company acquired all of S Corporation's assets and liabilities by issuing 24,000 shares of its $4 par value common stock. At that date, P's shares were selling for $22 per share. At that date before the acquisition method is applies, the companies' balance sheets follow: P. Company S Corporation Book Value Book Value Fair Value Cash and AR $109,000 $ 28,000 $ 28,000 Inventory 108,000 94,000 122,000 PPE 526,000 600,000 470,000 Less: accumulated depr (131,000) (240,000) Total Assets $612,000 $.482,000 $620,000 Accounts Payable $76,000 41,000 41,000 Notes Payable 204,000 65,000 63,000 Common Stock ($10 par) 27,000 160,000 Retained Earnings 305,000 216,000 Total Liabilities and Equity $612,000 $482.000 On the day before the merger, P paid $14,000 in legal and accounting fees to perform due diligence regarding the transfer of assets and liabilities to effect the acquisition. P paid $21,000 in audit fees and $7,000 for stock registration and listing fees in relation to its issuance of its shares. A. Prepare the journal entry to record the payment of legal fees by P to effect the transaction. B. Prepare the journal entries to record the business combination of 5 on P's books. C. Prepare the journal entry to record the payment of fees incurred by P to issue shares for the acquisition D. Prepare the consolidated balance sheet, in good form, immediately after the merger. E. Prepare the journal entries to record S's sale of its net assets on S's books. F. Prepare the journal entries to dissolve S
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