P 1-31 Journal Entries to Record a Business Combination On January 1 20X2 Frost

P 1-31 Journal Entries to Record a Business Combination On January 1 20X2 Frost Company acquired all of TKK Corporations assets and liabilities by issuing 24000 shares of its $4 par value common stock. At that date Frost shares were selling at $22 per share. Historical cost and fair value balance sheet data for TKK at the time of acquisition were as follows: Balance Sheet Item Historical Cost Fair Value Cash and Receivables $ 28000 $ 28000 Inventory 94000 122000 Buildings and Equipment 600000 470000 Less: Accumulated Depreciation (240000)- Total Assets $482000 $620000 Accounts Payable $ 41000 $ 41000 Notes Payable 65000 63000 Common Stock ($10 par value) 160000 Retained Earnings