Q. company A acquired 100% of voting stocks of company B for $3000000 cash and issuing 30000 common share of its own common stocks 9 par value $1) market price is $30 at acquisition date.

Company A incurred and paid direct expenses of $140000 related to acquisition as follows: legal fees $50000, $accounting fees $30000, travel expenses $10000, stock issuance expenses $50000. Company A capitalized these expenses as preferred expenses.

Required:

Prepare journal entry to record acquisition on company A records.

Prepare journal entries to record acquisition expenses on company A records