On July 1, 2017, Ayayal Corporation purchased young Company by paying $251,000 cash and issuing a $100,000 note payable to steve young. At July 1, 2017, the balance sheet young company was as follows.

Cash $50,000 Account payable 202,000

Account receivable 89,000 Stockholder's equality 232,500

Inventory 100,000 _______________

Land 40,000 434,500

Buildings (net) 74,500

Equipment (net) 69,500

Trademarks 11,000

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$434,500

To record amounts all approximate current values except for land (fair value of 60,000), inventory ( fair value of $124,000), and trademarks ( fair value of $14,960).

Prepare the July 1 entry for Ayayal corporation to record the purchase.

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Prepare the December 31 entry for Ayayal Corporation to record amortization of intangibles. The trademark has estimated useful life of 4 years with a residual value of

Account Titles and Explanation Debit Credit

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