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 $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 $448,200 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).
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 $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 $448,200 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).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare the July 1 entry for Pronghorn Corporation to record the purchase
Transcribed Image Text: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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