5. HC Corporation issued 7,500 shares ofits $3 par value common stock at a market price of $20 per share to acquire all the outstanding common stock of Barry Corporation. HC

paid $1,500 of legal fees for this business combination and $3,300 for issuing the securities. Barry was merged into HC and dissolved. Information for Barry Corporation immediately before the merger was as follows: Cash Building Patents Total Book value Fair value 2,000 30,000 Accounts payable Common stock 2,000 25,000 7,000 34,000 5,000 32,000 5,000 2,000 Add. paid-in capital 10,000 Retained earnings 15,000 Total 32,000 Prepare the journal entries on HC Corporation's books to account for the business combination.