Prepare stockholders’ equity sectionThe stockholders’ equities of Pal Corporation and Sip...

Prepare stockholders’ equity section

The stockholders’ equities of Pal Corporation and Sip Corporation at January 1 were as follows (in thousands):

On January 2, Pal issued 300,000 of its shares with a market value of $20 per share for all of Sip’s shares, and Sip was dissolved. On the same day, Pal paid $10,000 to register and issue the shares and $20,000 for other direct costs of combination.

REQUIRED: Prepare the stockholders’ equity section of Pal Corporation’s balance sheet immediately after the acquisition on January 2. (Hint: Prepare the journal entry.)