On August 17, 19X8, Kenya Printing Corp. paid \(\$ 229,000\) to purchase all the common stock of Travelers, Inc., and Travelers owes Kenya Printing \(\$ 42,000\) on a note payable. Immediately after the purchase, the two companies' balance sheets were as follows:

\section*{Required}
1. Prepare a consolidation work sheet.
2. Prepare the consolidated balance sheet on August 17, 19X8. Show total assets, total liabilities, and total stockholders' equity. It is not necessary to classify assets and liabilities as current and long-term.

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Cash......... Assets Accounts receivable, net.. Note receivable from Travelers Inventory. Kenya Printing Corp. $ 23,000 71,000 42,000 Travelers, Inc. $ 37,000 54,000 213,000 170,000 Investment in Travelers.... 229,000 Plant assets, net. 197,000 175,000 Goodwill.... Total......... $775,000 $436,000 Liabilities and Stockholders' Equity Accounts payable......... $119,000 $ 77,000 Notes payable... 190,000 71,000 Other liabilities.. Common stock. Retained carnings.. Total............... 33,000 88,000 219,000 113,000 214,000 87,000 $775,000 $436,000