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On July 1, 2020, Ayayai Corporation purchased the net assets of Soorya Company by paying $424,000 cash and issuing a $51,600 note payable to Soorya

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On July 1, 2020, 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, 2020, the statement of financial position of Soorya Company was as follows: Cash $75,300 Accounts payable Soorya, capital $315,600 240,000 Accounts receivable 120,000 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. Prepare the July 1, 2020 entry for Ayayai Corporation to record the purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Prepare the July 1, 2020 entry for Ayayai Corporation to record the purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1, 2020 Cash Accounts Receivable Inventory Land > Buildings Equipment Goodwill Cash Notes Payable Accounts Payable Assume that Ayayai is a private entity and tested its goodwill for impairment on December 31, 2021. Management determined that the reporting unit's carrying amount (including goodwill) was $546,000 and that the reporting unit's fair value (including goodwill) was $448,000. Determine if there is any impairment and prepare any necessary entry on December 31, 2021. Ayayai 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 O for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31, 2021 e Textbook and Media Prepare the July 1, 2020 entry for Ayayal Corporation to record the purchase. Assume that the purchase price was $203,800, all paid in cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1, 2020 Prepare the July 1, 2020 entry for Ayayai Corporation to record the purchase. Assume that the purchase price was $203,800, all paid in cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1, 2020 > >

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