On July 1, 2017, Ayayai Corporation purchased the net assets of Soorya Company by paying $424,000 cash and issuing a $51,600 note payable to Soorya Company. At July 1, 2017, the statement of financial position of Soorya Company was as follows:

Cash		$75,300		Accounts payable		$315,600
Accounts receivable		120,000		Soorya, capital		240,000
Inventory		98,400		Total		$555,600
Land		49,600
Buildings (net)		75,300
Equipment (net)		87,900
Trademarks (net)		49,100
Total		$555,600

The recorded amounts all approximate current values except for land (worth $62,000), inventory (worth $140,100), and trademarks (worthless). The receivables are shown net of an allowance for doubtful accounts of $12,000. The amounts for buildings, equipment, and trademarks are shown net of accumulated amortization of $13,000, $22,000, and $47,000, respectively.

(a)

Prepare the July 1, 2017 entry for Ayayai Corporation 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.)

Date	Account Titles and Explanation	Debit	Credit
July 1, 2017

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