PROBLEM 1 Johnston Company acquired the assets (except for cash) and assumed the liabilities of Raville Company. Immediately prior to the acquisition, Raville Company's balance sheet was as follows: Book Value Fair Value Cash $ 120,000 $120,000 Receivables (net) 192,000 228,000 Inventory 360,000 396,000 Plant and equipment (net) 480,000 540,000 Land 420.000 660.000 Total assets S 1.572,000 S 1.944,000 Liabilities $ 540,000 $ 594,000 Common stock (S 5 par value) 480,000 Other contributed capital Retained earnings 420,000 Total equities S 1,572,000 Required: 1. Prepare the journal entries on the books of Johnston Company to record the purchase of the assets and assumption of the liabilities of Raville Company if the amount paid was $1,560,000 in cash. 2. Use the blank journal page form provided on the next page. Leave the date column blank