Recording Direct Costs Assume the same information provided in Exercise 5-1. In addition, as¬

sume that Purl incurred the following direct costs:

Legal fees for preparing the acquisition agreement . $ 47,000 Accounting fees for the purchase investigation . 17,000 Travel expenses for meetings held with Surl management . 8,000 Legal fees for registering the common stock issued with the SEC . 32,000 Accounting fees for the review of unaudited financial statements and other data included in the registration statement . 16,000 SEC filing fees . 4,000

$124,000 Prior to the consummation date, $103,000 had been paid and charged to a Deferred Charges sus¬
pense account pending consummation of the acquisition. The remaining $21,000 has not been paid or accrued.
Prepare the journal entry to record the business combination and the direct costs.