The financial statements for Jode Inc. and Lakely Corp., just prior to their combination, for the year ending December 31, 2010, follow. Lakely's buildings were undervalued on its financial records by $60,000.
On December 31, 2010, Jode issued 54,000 new shares of its $10 par value stock in exchange for all the outstanding shares of Lakely. Jode's shares had a fair value on that date of $35 per share. Jode paid $34,000 to an investment bank for assisting in the arrangements. Jode also paid $24,000 in stock issuance costs to effect the acquisition of Lakely. Lakely will retain its incorporation.
Prepare the journal entries to record (1) the issuance of stock by Jode and (2) the payment of the combination costs.

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Lakely Corp. Jode Inc. $ 1,300,000 ( 1,180,000) 120,000 Revenues 500,000 ( 290,000) 210,000 Expenses Net income $4 700,000 120,000 $4 2$ 500,000 210,000 ( 110,000) $4 Retained earnings, January 1, 2010 Net income (from above) Dividends paid Retained earnings, December 31, 2010 ( 110,000) 710,000 160,000 600,000 $4 240,000 700,000 700,000 $4 240,000 350,000 600,000 120,000 Cash Receivables and inventory Buildings (net) Equipment (net) Total assets $ 1,800,000 250,000 $ 1,310,000 $4 195,000 Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/10 Total liabilities and stockholders' equity 750,000 90,000 710,000 430,000 85,000 600,000 $ 1,310,000 $ 1,800,000