Please explain :)

Problem 1 Adam Company and Bid Inc. agreed to form a new company, named Checker Corporation. Both Adam and Bid would be dissolbed. Checker paid $1,000 finder's fee and $700 for issuing stock. Checker issues 18,000 shares of its new common stock at par value of $3 per share and an agreed value of $10 per share, with Adam's stockholders receiving 25% of the stock, Bid's stockholders receiving 75% based on the following valuations assigned by the negotiating directors to the two constituent companies Adam Bid Book Value 7,000 10,000 Fair Value 7,000 25,000 16,000 3,000 Book Value 60,000 23,000 Fair Value 60,000 32,000 43,000 Cash Goodwill Accounts Payable Common Stock Add. Paid-in Capital Retained Earnings Net Assets 3,000 2,000 2,000 10,000 14,000 1,000 10,000 72,000 83,000 45,000 135,000 Prepare the journal entries for Checker corporation to account for the business combination