The Balance Sheet of Mintmore Company on September 30, 2006

Essay

The balance sheet of Mintmore Company on September 30, 2006, with related current fair values for assets and liabilities, is shown as follows:
On September 30, 2006, Spooner Corporation paid $1,560,000 to Mintmore Company for all the Mintmore assets except its cash of $50,000, and assumed all liabilities of Mintmore, in a business combination that had been approved by the boards of directors and stockholders of both companies. Also on September 30, 2006, Spooner paid legal fees of $20,000 incurred to implement the business combination.
Prepare journal entries for Spooner Corporation on September 30, 2006, to record the business combination with Mintmore Company. Disregard income taxes.