Exercise 12-12 (Part Level Submission) On July 1, 2017, Sheffield Corporation purchased Young Company by paying $260,600 cash and issuing a $105,000 note payable to Steve Young. At July 1, 2017, the balance sheet of Young Company was as follows. Cash $50,800 Accounts payable $204,000 Accounts receivable 90,800 Stockholders equity 244,400 Inventory 109,000 $448,400 Land 40,100 Buildings (net) 76,500 Equipment (net) 69,800 Trademarks 11,400 $448,400 The recorded amounts all approximate current values except for land (fair value of $64,200), inventory (fair value of $125,700), and trademarks (fair value of $16,320). \Prepare the December 31 entry for Sheffield Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $4,400. (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.)

Exercise 12-12 (Part Level Submission) On July 1, 2017, Sheffield Corporation purchased Young Company by paying $260,600 cash and issuing a $105,000 note payable to Steve Young. At July 1, 2017, the balance sheet of Young Company was as follows. Cash Accounts payable Stockholders' equity Accounts receivable $204,000 244,400 $448,400 Inventory Land Buildings (net) Equipment (net) Trademarks $50,800 90,800 109,000 40,100 76,500 69,800 11,400 $448,400 The recorded amounts all approximate current values except for land (fair value of $64,200), inventory (fair value of $125,700), and trademarks (fair value of $16,320). (a) Your answer is correct. Prepare the July 1 entry for Sheffield 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 o for the amounts.) Account Titles and Explanation Credit Inventory Account Titles and Explanation Debit Credit Inventory 125700 Goodwill 75480 T Accounts Receivable 90800 Cash 50800 land 642001 Buildings 76500T Equipment 69800 Trademarks 16320 T Notes Payable 105000 T Accounts Payable 204000 Tcash 260600 Click if you would like to Show Work for this question: Open Show Work (b) Prepare the December 31 entry for Sheffield Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $4,400. (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 o for the amounts.) Ik hafran estimated, useful life of years with a residual value s co ncerneditaccount Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work