90.2K

Verified Solution

Link Copied!

Exercise 12-12 On July 1, 2020, Swifty Corporation purchased Young Company by paying $258,600 cash and issuing a $101,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Accounts payable $203,000 Cash $52,000 Stockholders' equity 248,100 Accounts receivable 91,900 $451,100 Inventory 108,000 Land 40,700 Buildings (net) 76,400 Equipment (net 70,200 Trademarks 11,900 $451,100 The recorded amounts all approximate current values except for land (fair value of $64,700), inventory (fair value of $127,800), and trademarks (fair value of $15,280). Prepare the July 1 entry for Swifty 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 for the amounts.) Account Titles and Explanation Debit Credit Prepare the December 31 entry for Swifty Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $4,000. (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 0 for the amounts.) Account Titles and Explanation Debit Credit Open Show Work Click if you would like to Show Work for this

Answer & Explanation Solved by verified expert

See Answer