Rayburn Company purchased all of Kanodia Company's common stock for cash on January 1, which time the separate balance sheets of the two corporations appeared as follows:

During purchase negotiations, Rayburn determined that the appraised value of Kanodia's other assets was $720,000; and all of its remaining assets and liabilities were appraised at values approximating their book values. The remaining $40,000 of the purchase price was ascribed to goodwill.

(1) Prepare the consolidating adjustments

(2) Prepare the consolidated balance sheet at acquisition

(3) Prepare journal entries to record the transactions

(4) Post the journal entries to their respective T-accounts

(5) Record each of the transactions in the financial statement effects template.

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Rayburn Company Kanodia Consolidating Adjustments Consolidated Company Investment in Kanodia. $ 600,000 2,300,000 - Other assets.. $700,000 Goodwill ... Total assets $2,900,000 $700,000 Liabilities. .. $ 900,000 $160,000 Contributed capital . Retained earnings 1,400,000 600,000 300,000 240,000 Total liabilities and equity $2,900,000 $700,000