Acquisition journal entriesPhen Ltd$.$ issued $500,000$ common shares of $$10$ at par and paid $$1,000,000$ for the net assets of Sung Ltd$.$ on August $17,2014.$ The market value of Phen Ltd$.$s stocks was $$20$ per share at the time. Sung Ltd$.$ was dissolved immediately after the acquisition. The information related to Sung Ltd$.$s net assets is as follows $($in thousands$)$:$$2,300$r e Q U I r e D : Prepare a journal entry $($or entries$)$ on Pams books to account for the pooling of interests.Book ValueCash $ $2,000$ Trade receivables $800$ Inventories $3,200$ Prepaid expenses $1,000$ Land $6,000$ Building$-$net $10,000$ Equipment$-$net $3,500$Fair Value$ $2,0006003,0001,0006,80010,1003,0001,5004,6007,100$Trade payableNotes payableBonds payable Common stock, $$5$ par Retained Earnings$1,3004,3006,6005,3009,000$r e Q U I r e D : Prepare the necessary journal entries for the acquisition.