Assume that Big Company decides to acquire 100% Little Company for $500,000, prepare the journal ent

Assume that Big Company decides to acquire 100% Little Company for $500,000, prepare the journal entries for a 100% Acquisition by issuing 10,000 shared of Big Company Stock.Big Company Balance SheetAssets, Liabilities & EquitiesBook ValueCash$2,100,000AR$10,000Inventory$200,000Land$40,000PP&E$400,000Accumulated Depreciation-$150,000Patent$0Total Assets$2,600,000AP$100,000Common Stock ($10 par)$450,000Additional Paid In Capital$600,000Retained Earnings$1,450,000Total Liabilities & Equity$2,600,000Little Company Balance SheetAssets, Liabilities & EquitiesBook ValueCash$35,000AR$10,000Inventory$65,000Land$40,000PP&E$400,000Accumulated Depreciation-$150,000Patent$0Total Assets$400,000AP$100,000Common Stock$100,000Additional Paid In Capital$50,000Retained Earnings$150,000Total Liabilities & Equity$400,000Assume that Book Value = Fair Value

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