Marino Company had the following balance sheet on January 1, 2019: Marino Company Balance Sheet January 1, 2019 1 Cash $10,000.00 Accounts payable $20,000.00 2 Inventory 30,000.00 Notes payable 100,000.00 3 Property, plant, and equipment 200,000.00 4 Patent 30,000.00 Shareholders equity 150,000.00 5 $270,000.00 $270,000.00 On January 1, 2019, Paul Company purchased Marino by acquiring all its outstanding shares for $300,000 cash. On that date, the fair value of the inventory was $20,000, and the fair value of the equipment was $230,000. In addition, the fair value of a previously unrecorded customer list was $25,000. For all other amounts, the book value of January 1, 2019, equaled fair value. Required: 1. Compute the goodwill associated with the purchase of Marino. 2. Prepare the journal entry necessary on January 1, 2019, to record the acquisition of Marino. CHART OF ACCOUNTS Marino Company General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Property, Plant & Equipment 189 Accumulated Depreciation 191 Patent 192 Customer List 194 Goodwill LIABILITIES 211 Accounts Payable 221 Notes Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense 1. Compute the goodwill associated with the purchase of Marino. $ 2. Prepare the journal entry to record the acquisition of Marino by Paul Company on January 1. General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT