On Jan 1, 2002, Frost Company acquired all of TKK Corporation's assets and liabilities by issuing 24,000 shares of its $4 par value common stock. At that date, Frost shares were selling at $22 per share. Historical cost and fair value balance sheet data for TKK at the time of acquisition were as follows:

Balance Sheet Historical Cost Fair Value

Cash and Receivables 28,000 28,000
Inventory 94,000 122,000
Buildings and Equipment 600,000 470,000
Less: Accum Depreciation (240,000)
Total Assets 482,000 620,000
Accounts Payable 41,000 41,000
Notes Payable 65,000 63,000
Common Stock ($10 Par value) 160,000
Retained Earnings 216,000
Total Liabilities and Equities 482,000

Frost paid legal fees for the transfer of assets and liabilities of $14000, audit fees of $21,000, and listing application fees for the new shares of $7,000.

Prepare the journal entries made by Frost to record the business combination.