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Pintime Industries Inc. entered into a business combination agreement with Sydrolized Chemical Corporation (SCC) to ensure an uninterrupted supply of key raw materials and to realize certain economies from combining the operating processes and the marketing efforts of the two companies. Under the terms of the agreement, Pintime issued 180,400 shares of its $2 par common stock in exchange for all of SCCs assets and liabilities. The Pintime shares then were distributed to SCCs shareholders, and SCC was liquidated. Immediately prior to the combination, SCCs balance sheet appeared as follows, with fair values also indicated:

	Book Values				Fair Values
Assets
Cash	$	21,000			$	21,000
Accounts Receivable		242,000				235,900
Less: Allowance for Bad Debts		(6,100	)
Inventory		372,000				386,000
Long-Term Investments		149,000				174,000
Land		40,000				83,000
Rolling Stock		120,000				63,000
Plant & Equipment		2,413,000				2,488,000
Less: Accumulated Depreciation		(607,000	)
Patents		112,000				494,000
Special Licenses		94,300				99,800
Total Assets	$	2,950,200			$	4,044,700
Liabilities
Current Payables	$	138,800			$	138,800
Mortgages Payable		502,000				522,000
Equipment Trust Notes		101,000				96,000
Debentures Payable		1,000,000				950,000
Less: Discount on Debentures		(40,000	)
Total Liabilities	$	1,701,800			$	1,706,800
Stockholders Equity
Common Stock ($6 par)		585,000
Additional Paid-In Capital from Common Stock		502,000
Additional Paid-In Capital from Retirement of Preferred Stock		21,000
Retained Earnings		155,400
Less: Treasury Stock (1,200 shares)		(15,000	)
Total Liabilities & Equity	$	2,950,200

Immediately prior to the combination, Pintimes common stock was selling for $15 per share. Pintime incurred direct costs of $147,000 in arranging the business combination and $45,000 of costs associated with registering and issuing the common stock used in the combination. Required: a. Prepare all journal entries that Pintime should have entered on its books to record the business combination. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare all journal entries that should have been entered on SCCs books to record the combination and the distribution of the stock received. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the payment of legal fees. A B Record the costs of issuing stock. ( A B Record the purchase of SCC.

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