$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 receivable91,700
Stockholders’ equity245,100
Inventory107,000
$447,100
Land41,000
Buildings (net)75,600
Equipment (net)69,900
Trademarks11,600
$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
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