On July 1, 2020, Sheffield Corporation purchased Young Company by paying $260,500 cash and issuing a $117,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Cash $51,800 Accounts payable $202,000 Accounts receivable 89,900 Stockholders' equity 239,300 Inventory 103,000 $441,300 Land 40,800 Buildings (net) 74,700 Equipment (net) 70,000 Trademarks 11,100 $441,300 The recorded amounts all approximate current values except for land (fair value of $63,200), inventory (fair value of $125,200), and trademarks (fair value of $16,720). (a) Prepare the July 1 entry for Sheffield 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 O for the amounts.) Account Titles and Explanation Debit Credit
On July 1, 2020, Sheffield Corporation purchased Young Company by paying $260,500 cash and issuing a $117,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Cash $51,800 Accounts payable $202,000 Accounts receivable 89,900 Stockholders' equity 239,300 Inventory 103,000 $441,300 Land 40,800 Buildings (net) 74,700 Equipment (net) 70,000 Trademarks 11,100 $441,300 The recorded amounts all approximate current values except for land (fair value of $63,200), inventory (fair value of $125,200), and trademarks (fair value of $16,720). (a) Prepare the July 1 entry for Sheffield 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 O for the amounts.) Account Titles and Explanation Debit Credit
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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