On July 1,2014,Piper Corporation Issued 23,000 Shares of Its Own

Essay

On July 1,2014,Piper Corporation issued 23,000 shares of its own $2 par value common stock for 40,000 shares of the outstanding stock of Sector Inc.in an acquisition.Piper common stock at July 1,2014 was selling at $16 per share.Just before the business combination,balance sheet information of the two corporations was as follows:
Required:
1.Prepare the journal entry on Piper Corporation's books to account for the investment in Sector Inc.
2.Prepare a consolidated balance sheet for Piper Corporation and Subsidiary immediately after the business combination.