Prepare the July 1 entry for Pronghorn Corporation to record the purchase On July 1, 2025, Pronghorn Corporation purchased Young Company by paying $252,100 cash and issuing a $146,000 note payable toSteve Young. At July 1, 2025, the balance sheet of Young Company was as follows.CashAccounts receivableInventoryLandBuildings (net)Equipment (net)Trademarks(a)$50,900A91,600107,00041,60075.60069,90011,600$448,200Accounts payableStockholders' equity$205,000243,200The recorded amounts all approximate current values except for land (fair value of $60,100), inventory (fair value of $124,500), andtrademarks (fair value of $16,080).$448,200for Bronghorn Corporation to record the purchase. (Credit account titles are automatically indented when

Journal Entry is the primary step to record the transaction in the books of accounts. The increase in assets is debited while increase in liabilities is credited. Any expenses incurred is debited and revenue earned is credited. Journal Entry On July 1: Account Titles and Explanation Debit ($) Credit ($) Cash 50900 Accounts receivable 91600 Inventory 124500 Land 60100 Buildings 75600 Equipment 69900 Trademarks 16080 Goodwill 114420 Accounts payable 205000 Cash 252100 Note payable 146000 (To record the purchase entry) Working: Goodwill is the difference between the credit amounts and debit amounts.

Answered: On July 1, 2025, Pronghorn Corporation…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Prepare the July 1 entry for Pronghorn Corporation to record the purchase

On July 1, 2025, Pronghorn Corporation purchased Young Company by paying $252,100 cash and issuing a $146,000 note payable to
Steve Young. At July 1, 2025, the balance sheet of Young Company was as follows.
Cash
Accounts receivable
Inventory
Land
Buildings (net)
Equipment (net)
Trademarks
(a)
$50,900
A
91,600
107,000
41,600
75.600
69,900
11,600
$448,200
Accounts payable
Stockholders' equity
$205,000
243,200
The recorded amounts all approximate current values except for land (fair value of $60,100), inventory (fair value of $124,500), and
trademarks (fair value of $16,080).
$448,200
for Bronghorn Corporation to record the purchase. (Credit account titles are automatically indented when

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Could you please calculate also: Prepare the December 31 entry for Pronghorn Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $4,920.

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