The balance sheets of Abdul Co. and Lana Co. on June 30, Year 2, just before the transaction described below, were as follows

	Abdul		Lana
Receivables	$	93,000	$	20,150
Inventory		60,500		8,150
Plant assets (net)		236,000		66,350
	$	389,500	$	94,650
Current liabilities	$	65,500	$	27,600
Long-term debt		94,250		40,100
Common shares		140,500		40,050
Retained earnings (deficit)		89,250		(13,100)
	$	389,500	$	94,650

On June 30, Year 2, Abdul Co. purchased all of Lana Co. assets and assumed all of Lana Co. liabilities for $58,000 in cash. The carrying amounts of Lanas net assets were equal to fair value except for the following:

	Fair Value
Inventory	$10,050
Plant assets	70,100
Long-term debt	33,800

Required:

(a) Prepare the journal entries for Abdul Co. and for Lana Co. to record this transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1.Record the acquisition of net assets of Lana Co. in Abdul Co.'s books.

2. Record the sale of assets and liabilities to Abdul Co. in Lana Co.'s books.

(b) Prepare balance sheets for Abdul Co. and Lana Co. at June 30, Year 2, after recording the transaction noted above. (Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.)

Abdul Co. and Lana Co.
Balance Sheet
at June 30, Year 2
	Abdul Co.		Lana Co.
Receivables	$		$
Inventory
Plant assets (net)
Goodwill
	$		$
Current liabilities	$		$
Long-term debt
Common shares
Retained earnings (deficit)
	$		$