Cash

Accounts receivable

Inventory

Land

Buildings $($net$)$

Equipment $($net$)$

Trademarks $($net$)$

On July $1,2023,$ Blue Spruce Corporation purchased the net assets of Soorya Company by paying $$454,000$ cash and issuing a

$$50,300$ note payable to Soorya. At July $1,2023,$ the statement of financial position of Soorya was as follows:

$$75,100$

$116,000$

$96,300$

$49,000$

$75,100$

$93,300$

$49,100$

$$553,900$

Accounts payable

Soorya, capital

$$314,900$

$239,000$

$$553,900$

The recorded amounts all approximate current values except for land $($worth $$60,200),$ inventory $($worth $$135,200),$ and trademarks

$($worthless$).$ The receivables are shown net of an allowance for expected credit losses of $$11,000.$ The amounts for buildings,

equipment, and trademarks are shown net of accumulated amortization of $$15,000,$ $$31,000,$ and $$55,000,$ respectively.

$-$

Your answer is partially correct.

Prepare the July $1,2023$ entry for Blue Spruce to record the purchase. $($Credit account titles are automatically indented when the

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. List

all debit entries before credit entries.$)$

Account Titles and Explanation

Cash

Date

July $1,2023$

Debit

Credit

v

$75100$

Accounts Receivable

Inventory

v

$116000$

v

$135200$

Land

V

$60200$

Buildings

V

$75100$ On July $1,2023,$ Blue Spruce Corporation purchased the net assets of Soorya Company by paying $$454,000$ cash and issuing a

$$50,300$ note payable to Soorya. At July $1,2023,$ the statement of financial position of Soorya was as follows:

The recorded amounts all approximate current values except for land $($worth $$60,200),$ inventory $($worth $$135,200),$ and trademarks

$($worthless$).$ The receivables are shown net of an allowance for expected credit losses of $$11,000.$ The amounts for buildings,

equipment, and trademarks are shown net of accumulated amortization of $$15,000,$$$31,000,$ and $$55,000,$ respectively.

Prepare the July $1,2023$ entry for Blue Spruce to record the purchase. $($Credit account titles are automatically indented when the

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. List

all debit entries before credit entries.$)$

Date Account Titles and Explanation

Debit

Credit

July $1,2023$

Accounts Receivable Buildings

Allowance for Expected Credit Losses

Notes Payable

Accounts Payable

eTextbook and Media

Question Part Score

Your answer is partially correct.

Assume that Blue Spruce is a private entity and tested its goodwill for impairment on December $31,2024.$ Management

determined that the reporting unit's carrying amount $($including goodwill$)$ was $$544,000$ and that the reporting unit's fair value

$($including goodwill$)$ was $$457,000.$ Determine if there is any impairment and prepare any necessary entry on December $31,2024.$

Blue Spruce applies ASPE. $($Credit account titles are automatically indented when the 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. List debit entry before credit entry.$)$

Dec. $31,2024$ Based on part $($a$),$ assume now that Blue Spruce is a public entity and tested its goodwill for impairment on December $31,2024.$

The cash$-$generating unit's values $($including goodwill$)$ are as follows:

Determine if there is any impairment and prepare any necessary entry on December $31,2024.($Credit account titles are

automatically indented when the 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. List debit entry before credit entry.$)$