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$50,300 $202,000 91,700 245,100 107,000 $447,100 41,000 75,600 69,900 11,600 $44

ID: 2585984 • Letter: #

Question

$50,300

$202,000

91,700

245,100

107,000

$447,100

41,000

75,600

69,900

11,600

$447,100

(a)

Account Titles and Explanation

Debit

Credit

On July 1, 2017, Bramble Corporation purchased Young Company by paying $251,900 cash and issuing a $135,000 note payable to Steve Young. At July 1, 2017, the balance sheet of Young Company was as follows.
Cash

$50,300

Accounts payable

$202,000

Accounts receivable

91,700

Stockholders’ equity

245,100

Inventory

107,000

$447,100

Land

41,000

Buildings (net)

75,600

Equipment (net)

69,900

Trademarks

11,600

$447,100


The recorded amounts all approximate current values except for land (fair value of $63,900), inventory (fair value of $127,400), and trademarks (fair value of $15,040).

Explanation / Answer

a) Account Titles and Explanation Debit Credit Cash $50,300.00 Accounts receivable $91,700.00 Inventory $127,400.00 Land $63,900.00 Buildings (net) $75,600.00 Equipment (net) $69,900.00 Trademarks $15,040.00 Goodwill (Balancing Figure) $95,060.00                     Cash $251,900.00                     Accounts Payable $202,000.00                     Notes Payable $135,000.00