$50,200 $208,000 90,000 237,900 106,000 $445,900 41,300 75,900 70,500 12,000 $44

Question

$50,200

$208,000

90,000

237,900

106,000

$445,900

41,300

75,900

70,500

12,000

$445,900

Account Titles and Explanation

Debit

Credit

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

Account Titles and Explanation

Debit

Credit

On July 1, 2017, Marigold Corporation purchased Young Company by paying $256,600 cash and issuing a $115,000 note payable to Steve Young. At July 1, 2017, the balance sheet of Young Company was as follows.
Cash

$50,200

Accounts payable

$208,000

Accounts receivable

90,000

Stockholders’ equity

237,900

Inventory

106,000

$445,900

Land

41,300

Buildings (net)

75,900

Equipment (net)

70,500

Trademarks

12,000

$445,900

The recorded amounts all approximate current values except for land (fair value of $61,400), inventory (fair value of $125,800), and trademarks (fair value of $16,160).

Explanation / Answer

Journal Entry S. No. Date Particulars Dr. Amt. Cr. Amt. 1 1-Jul-17 Cash      50,200.00 Accounts Receivable      90,000.00 Inventory    125,800.00 Land      61,400.00 Buildings      75,900.00 Equipment      70,500.00 Trademarks      12,000.00 Goodwill (Bal. Fig.)      93,800.00    Accounts Payable    208,000.00    Cash    256,600.00    Notes Payable    115,000.00 (To record the purchase of Young Company) 2 31-Dec-17 Amortization Expenses            965.00 ($12,000 - $4,280) / 4 Years X 6/12    Trademarks            965.00 (To record the amortization expense)

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