1.On July 1, 2019, Renaldo Incorporated paid cash for 21,000 shares of Henderson Company's $10 par value stock, when it was trading at $22 per share.At that time, Henderson's total stockholders' equity was $597,000, and they had 30,000 shares of stock outstanding, both before and after the purchase.The book value of Henderson's net assets is believed to approximate the fair values.

Requirement 1:Prepare the journal entry that Renaldo would record at the date of acquisition on their general ledger.

Requirement 2:Calculate the balance of the goodwill that would be recorded on Renaldo's general ledger, on Henderson's general ledger, and in the consolidated financial statements.