Instructions: 1. Write down your name and ID in the specified area above. 2. Submit your answer on time. 3. Use A4 size papers for your answer 4. Make your answer organized and clear 5. Use a ruler to make tables 6- Submit this question page along with your answer. Journal entries and balance sheet for an acquisition On January 2, 2011, Al-Bayan Corporation issues 25,000 shares of its own $10 par common stock for all the outstanding stock of Al-Eshraq Corporation in an acquisition. Al-Eshraq is dissolved. In addition, Al-Bayan pays $40,000 for registering and issuing securities and 60.000 for other costs of combination. The market price of Al-Bayan's stock on January 2, 2011, is S60 per share. Relevant balance sheet information for Al-Bayan and Al-Eshraq Corporations on December 31, 2010, just before the combination, is as follows (in thousands): Al-Eshraq Fair Value Cash Al-Bayan Al-Eshraq Historical Cost Historical Cost $240 $20 100 60 200 180 Inventories Other current assets $20 120 200 Instructions: 1. Write down your name and ID in the specified area above. 2. Submit your answer on time. 3. Use A4 size papers for your answer 4. Make your answer organized and clear 5. Use a ruler to make tables 6- Submit this question page along with your answer. Journal entries and balance sheet for an acquisition On January 2, 2011, Al-Bayan Corporation issues 25,000 shares of its own $10 par common stock for all the outstanding stock of Al-Eshraq Corporation in an acquisition. Al-Eshraq is dissolved. In addition, Al-Bayan pays $40,000 for registering and issuing securities and 60.000 for other costs of combination. The market price of Al-Bayan's stock on January 2, 2011, is S60 per share. Relevant balance sheet information for Al-Bayan and Al-Eshraq Corporations on December 31, 2010, just before the combination, is as follows (in thousands): Al-Eshraq Fair Value Cash Al-Bayan Al-Eshraq Historical Cost Historical Cost $240 $20 100 60 200 180 Inventories Other current assets $20 120 200