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.

Cash 37,500

Receivables 67,500

Supplies 3,500

Inventory 75,000

Land 135,000

Buildings 156,250

Accum. Deprec-Buildings (36,500)

Equipment 152,500

Accum.Deprec-Equip (65,450)

Copyrights 7,500

Total Assets $ 532,800

Accounts Payable $ 150,000

Mortgage Payable 225,000

Common Stock 125,000

Treasury Stock (2,500)

Retained Earnings 35,300

Total Liabilities & Equity $ 532,800

The recorded amounts all approximate current (market and book) values except for land (worth $145,000), inventory (worth $93,750), and copyrights (worth $11,250).

Prepare the July 1 entry for Griffey Corporation to record the purchase.