The following financial statement information was prepared for Blue Corporation and Sparse Company at December 3 1 . 2 0X2:

Blue Corporation and Sparse Company agreed to combine as of January 1, 20X3. In completing the merger. Blue Corporation paid finder's fees of $30,000, audit fees of $15,000, legal fees of $24,000, stock registration fees of $8,000, and stock listing application fees of $6,000.
At January 1, 20X3, the book values of Sparse Company's assets and liabilities approximated market value except for inventory with a market value of $200,000, buildings and equipment with a market value of $350,000, and bonds payable with a market value of $105,000. All assets and liabilities were immediately recorded on the books of Blue Corporation.

Required Give all journal entries recorded by Blue Corporation assuming:

a. Blue Corporation issued 40,000 shares of $8 par value common stock to acquire all the assets and liabilities of Sparse Company in a business combination recorded as a purchase. Blue Corporation common stock was trading at $14 per share on January 1, 20X3.

b. Blue Corporation issued 8,000 shares of $ 10 par value preferred stock to acquire all the assets and liabilities of Sparse Company in a business combination recorded as a purchase. Blue Corporation preferred stock was determined to have a market value of $50 per share at the time of issue.

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Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Balance Sheets December 31, 20X2 Blue Corporation $ 140,000 170.000 250,000 Sparse Company $ 70,000 110,000 180,000 80.000 100,000 $680.000 $450,000 (320,000) 360,000 (230,000) 220,000 Goodwill Total Assets 70,000 20,000 $1.070.000 $700,000 Accounts Payable $ 70,000 $195,000 Bonds Payable 320,000 100,000 Bond Premium Common Stock Additional Paid-In Capital 10,000 120,000 150,000 170,000 60,000 Retained Earnings 390.000 185,000 Total Liabilities and Equities $1,070,000 $700,000