On January 1 2011 Perez Company acquired all the assets
On January 1, 2011, Perez Company acquired all the assets and assumed all the liabilities of Stalton Company and merged Stalton into Perez. In exchange for the net assets of Stalton, Perez gave its bonds payable with a maturity value of $600,000, a stated interest rate of 10%, interest payable semiannually on June 30 and December 31, a maturity date of January 1, 2021, and a yield rate of 12%. Balance sheets for Perez and Stalton (as well as fair value data) on January 1, 2011, were as follows:


Required:
Prepare the journal entry on the books of Perez Company to record the acquisition of Stalton Company’s assets and liabilities in exchange for thebonds.
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