Prepare the appropriate entries for peris company

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Reference no: EM132648426

On December 31, 2010, Peris Company acquired Shanta Company's outstanding stock by paying $200,000 cash and issuing 10,000 shares of its own $30 par value common stock, when the market price was $65 per share. Peris paid legal and accounting fees amounting to $20,000 in addition to stock issuance costs of $12,000. Shanta is dissolved on the date of the acquisition. Balance sheet information for Peris and Shanta immediately preceding the acquisition is shown below, including fair values for Shanta's assets and liabilities.


Peris Book Value  Shanta Book Value    Shanta  Fair Value
Cash 490,000  $140,000  $140,000
Accounts Receivable  560,000 280,000 280,000
Inventory         520,000         200,000 260,000
Land  460,000 150,000 140,000
Plant Assets - Net  980,000  25,000 355,000
building 380,000 170,000 190,000
Accounts Payable  460,000  140,000  140,000
Other accrued expenses  160,000 45,000 65,000
Notes Payable  800,000 460,000 480,000
Common Stock($30 par)     960,000

Common Stock ($20 par)
    200,000
Additional P.I.C   192,000             80,000
Retained Earnings  818,000         340,000

Required:

Question 1. Prepare the appropriate entries

Reference no: EM132648426

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