On July 1, 2017, Ayayal Corporation purchased young Company by paying $251,000 cash and issuing a $100,000 note payable to steve young. At July 1, 2017, the balance sheet young company was as follows.
Cash $50,000 Account payable 202,000
Account receivable 89,000 Stockholder's equality 232,500
Inventory 100,000 434,500
Land 40,000
Buildings (net) 74,500
Equipment (net) 69,500
Trademarks 11,000
$434,500
To record amounts all approximate current values except for land (fair value of 60,000), inventory ( fair value of $124,000), and trademarks ( fair value of $14,960).
Prepare the July 1 entry for Ayayal corporation to record the purchase.To record amounts all approximate current values except for land (fair value of 60,000), inventory ( fair value of $124,000), and trademarks ( fair value of $14,960).
Prepare the July 1 entry for Ayayal corporation to record the purchase.
Prepare the December 31 entry for Ayayal Corporation to record amortization of intangibles. The trademark has estimated useful life of 4 years with a residual value of