Homework answers / question archive / On July 1, 2020, Ayayai Corporation purchased Young Company by paying $257,800 cash and issuing a $139,000 note payable to Steve Young

On July 1, 2020, Ayayai Corporation purchased Young Company by paying $257,800 cash and issuing a $139,000 note payable to Steve Young

Accounting

Share With

---

On July 1, 2020, Ayayai Corporation purchased Young Company by paying $257,800 cash and issuing a $139,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows.

 

Cash $51,600 Accounts payable $207,000

Accounts receivable 89,700 Stockholders' equity 238,700

Inventory 106,000 $445,700

Land 40,600

Buildings (net) 75,600

Equipment (net) 71,000

Trademarks 11,200

$445,700

 

The recorded amounts all approximate current values except for land (fair value of $64,500), inventory (fair value of $125,100), and trademarks (fair value of $15,120).

 

 

 

Collapse question part

(a)

Prepare the July 1 entry for Ayayai Corporation to record the purchase. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

 

Account Titles and Explanation Debit Credit

enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount

enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount