Could somebody help me with the following problems. Thank you!

Following are the account balances of Miller Company and Richmond Company as of December 31^st, 2013. The fair value of the net assets of Richmond is equal to the book value of the net assets. (Therefore, the net assets are purchased at book value.)

Additional Information (not reflected in preceding figures)

On December 31, Miller issues 20,000 shares of its $20 par value common stock for all of the outstanding shares of Richmond Company.The market value of the stock is $30 per share.

In creating this combination, Miller pays $5,000 in stock issue costs and $15,000 in accounting and legal fees.

1. Using the equity method, prepare the necessary journal entries if Richmond remains a separate legal entity. Complete the acquisition entries.

2. Prepare eliminating entries and complete the consolidation worksheet

	Miller Company Book Value 12/31	Richmond Company Book Value 12/31
Cash	$600,000	$200,000
Receivable	900,000	300,000
Inventory	1,100,000	600,000
Building & Equipment, Net	9,000,000	800,000
Total Assets	11,600,000	1,900,000
Accounts payable	$400,000	$200,000
Notes payable	3,400,000	1,100,000
Common stock--$20 par value	2,000,000
Common stock--$5 par value		220,000
Additional paid in capital	900,000	100,000
Retained earnings	4,900,000	280,000
Total liabilities & equity	11,600,000	1,900,000
Retained earnings 1/1	2,300,000	130,000
Revenues	6,000,000	900,000
Expenses	3,400,000	750,000