Pedro Corporation acquired 75 percent of Strop Company on January 1, 2020, by issuing 180,000...
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Pedro Corporation acquired 75 percent of Strop Company on January 1, 2020, by issuing 180,000 shares of $1 par common stock. The market value of the Pedro stock on this date was $17 per share. Pedro paid $84,000 to a third party for help in arranging the business combination and $53,000 to register and issue the shares issued in the acquisition. REQUIRED: PEDRO'S ACQUISITION DATE(COMBINED) JOURNAL ENTRY) WOULD INCLUDE: NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. DEBIT TO ACQUISITION EXPENSE FOR: AJ DEBIT TO INVESTMENT IN S FOR: 4 CREDIT TO COMMON STOCK FOR A/ CREDIT TO ADDITIONAL PAID IN CAPITAL FOR AJ CREDIT TO CASH FOR A/
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