On May 1, Soriano Co. reported the following account balances along with their estimated fair values:CarryingAmountFair Value151,00080,000587,000652,0001,470,000Receivables151,00080,000InventoryCopyrightsPatented technology168,000855,000$ 1, 254,000Total assets237,000 $694,000100,000223,000Current liabilities237,000Long-term liabilitiesCommon stock681, 000Retained earningsTotal liabilities and equities$ 1,254,000On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. Tofacilitate the merger, Zambrano also paid $105,000 to an investment banking firm.The following information was also available:• Zambrano further agreed to pay an extra $82,400 to the former owners of Soriano only if they meet certain revenue goals duringthe next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at$41,200.Soriano has a research and development project in process with an appraised value of $238,500. However, the project has not yetreached technological feasibility and the project's assets have no alternative future use.a&b. Prepare Zambrano's journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was(a) $727,400 & (b) $849,700. (If no entry is required for a transaction/event, select "No journal entry required" in the first accountfield.)

In accounting records, a journal entry is used to record the debit and credit sides of a…

On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Fair Value 151,000 $ 151,000 80, 000 587,000 652,000 $ 1,254,000 $ 1,470,000 Amount Receivables Inventory Copyrights Patented technology Total assets 80,000 168,000 855,000 Current liabilities Long-term liabilities Common stock $4 237,000 681,000 237,000 694,000 100,000 223,000 Retained earnings Total liabilities and equities $ 1,254,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist acilitate the merger, Zambrano also paid $105,000 to an investment banking firm. The following information was also available:

On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Fair Value 151,000 $ 151,000 80, 000 587,000 652,000 $ 1,254,000 $ 1,470,000 Amount Receivables Inventory Copyrights Patented technology Total assets 80,000 168,000 855,000 Current liabilities Long-term liabilities Common stock $4 237,000 681,000 237,000 694,000 100,000 223,000 Retained earnings Total liabilities and equities $ 1,254,000 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist acilitate the merger, Zambrano also paid $105,000 to an investment banking firm. The following information was also available:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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