Gogo Corporation acquired Gigi Corporation on January 1, 2020, and has obtained the following audited condensed balance sheet. Gogo and Gigi agree on a price of $300,000 for Gigi's net assets and incurs $8,000 in acquisition costs.

Gigi Corporation Balance Sheet December 31, 2019
Assets			Liabilities and Equity
Current assets	$ 45,000		Current Liabilities	$ 40,000
Land	50,000		Capital Stock (550,000
Buildings (net)	70,000		shares, $.10 par value)	55,000
Equipment (net)	50,000		Other Paid-in Capital	45,000
			Retained Earnings	75,000
	$215,000			$215,000

Gogo also appraised the following fair values for Gigi's assets and liabilities:

Current assets	$ 50,000
Land	60,000
Buildings (net)	80,000
Equipment (net)	60,000
Current Liabilities	(50,000)
Required:	$200,000

1. Prepare the necessary journal entry to record the purchase for cash.

2. Gogo issues its 5,000, $1 par value common stock as consideration. The fair value of the stock at the acquisition date is $60 per share. Additionally, Gogo incurs $8,000 of security issuance costs. Prepare the necessary journal entry to record the purchase for common stocks.