Journal Entries to Record a Business Combination
On January X Prost Company acquired all of SKK Corporation's assets and liabilities by issuing shares of its $ par value common stock. At that date, Prost shares were selling at $ per share. Historical cost and fair value balance sheet data for SKK at the time of acquisition were as follows:
tableBalance Sheet Item,Historical Cost,Fair ValueCash & Receivables,$ $InventoryBuildings & Equipment,Less: Accumulated Depreciation,Total Assets,$$Accounts Payable,$ $ Notes Payable,Common Stock $ par valueRetained Earnings,Total Liabilities & Equities,$
Prost paid legal fees for the transfer of assets and liabilities of $ Prost also paid audit fees of $ and listing application fees of $ both related to the issuance of new shares.
Required
Prepare the journal entries made by Prost to record the business combination.
