$($Exercise $5\mathrm{.}6)$

On May $31,2005,$ Byers Corporation acquired for $$560,000$ cash all the net assets except cash of Sellers Company, and paid $$60,000$ cash to a law firm for legal services in connection with the business combination. The balance sheet of Sellers on May $31,2005,$ was as follows:

CHECK FIGURE

Debit goodwill, $$30,000.$

$\backslash$table$[[\backslash$table$[[$SELLERS COMPANY$],[$Sheet $($pror to business combination$)],[,$ May $31,2005]]],[$Assets$,$Liabilities and Stockholders' Equity$],[$Cash$,$$$40,000,$Liabilities,$$620,000$

Prepare the journal entries