PROBLEM $1$A

On January $1,2025,$ Excel Company acquired all of Sheets Corporation's assets and liabilities by issuing $25,000$ shares of its $$7$ par value common stock. At that date, Excel shares were selling at $$11$ per share. Historical cost and fair value balance sheet data for Sheets at the time of acquisition were as follows.

$\backslash$table$[[$Accounts$,$Historical Cost,Fair Value$],[$Cash$,$$$30,000,$$$30,000],[$Receivables$,55,000,68,000],[$Inventory$,85,000,60,000],[$Buildings & Equipment,$750,000,500,000],[$Less: Accumulated Depreciation,$(280,000),],[$Total Assets,$640,000,658,000],[$Accounts Payable,$$58,000,$$$58,000],[$Notes Payable,$82,000,70,000],[$Common Stock,$180,000,],[$Retained Earnings,$320,000,],[$Total Liabilities & Equities,$640,000,]]$

Excel paid legal fees for the transfer of assets and liabilities for $$22,000.$ Excel also paid audit fees of $$25,000$ and listing application fees of $$12,000,$ both related to the issuance of new shares.

Required:

Prepare the journal entries made by Excel and Sheets to record the business combination.