75 6. On July 1, 2020, Griffey Corporation purchased Johnson Company by paying $287,500 cash and issuing a $75,000 note payable to Steve Johnson. At July 1, 2020, the balance sheet of Johnson Company was as follows. 77 Cash Receivables Office Supplies Inventory Land Buildings Accum. Deprec-Buildings Equipment Accum. Deprec-Equip Copyrights Total Assets $ 37,500 67,500 3,500 75,000 135,000 156,250 (36,500) 152,500 (65,450) 7,500 $ 532,800 Accounts Payable Mortgage Payable Common Stock Treasury Stock Retained Earnings Total Liabilities & Equity 84 $ 150,000 225,000 125,000 (2,500) 35,300 $ 532,800 89 91 The recorded amounts all approximate current (market and book) values except for land (worth 92 $145,000), inventory (worth $93,750), and copyrights (worth $11,250). 93 94 Hint: Accumulated depreciation does not carry forward - subtract from related asset to obtain book 95 value. 96 34 Hint: Accumulated depreciation does not carry forward - subtract from related asset to obtain book 35 value. 36 27 Instructions 28 Prepare the July 1 entry for Griffey Corporation to record the purchase. 29