Question

Assume the same information from Exercise 3–8. In addition, Peep Inc. incurred the following direct costs:
Accounting fees for the purchase........ $15,000
Legal fees for registering the common stock.... 30,000
Other legal fees for the acquisition......... 45,000
Travel expenses to meet with Shy managers.... 5,000
SEC filing fees................. 2,000
....................... $97,000
Before the acquisition consummation date, $90,000 of the direct costs was charged to a deferred charges account pending the completion of the acquisition. The remaining $7,000 has not been accrued or paid.

Required:
Prepare the journal entry to record both the acquisition and the direct costs.



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  • CreatedMarch 13, 2015
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