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.