On January 2, 2011 Piron Corporation Issued 100,000 New Shares

Essay

On January 2, 2011 Piron Corporation issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Seana Corporation's outstanding common shares.Piron paid $15,000 to register and issue shares.Piron also paid $20,000 for the direct combination costs of the accountants.The fair value and book value of Seana's identifiable assets and liabilities were the same.Summarized balance sheet information for both companies just before the acquisition on January 2, 2011 is as follows:
Required:
1.Prepare Piron's general journal entry for the acquisition of Seana, assuming that Seana survives as a separate legal entity.
2.Prepare Piron's general journal entry for the acquisition of Seana, assuming that Seana will dissolve as a separate legal entity.