On July 1, 2020, Flounder Corporation purchased Young Company by paying $261,000 cash and issuing a $143,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows.

Cash		$50,000		Accounts payable		$208,000
Accounts receivable		91,000		Stockholders equity		238,700
Inventory		108,000				$446,700
Land		41,100
Buildings (net)		74,800
Equipment (net)		70,500
Trademarks		11,300
		$446,700

The recorded amounts all approximate current values except for land (fair value of $62,600), inventory (fair value of $125,800), and trademarks (fair value of $17,600).

(a)

Prepare the July 1 entry for Flounder 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 0 for the amounts.)

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enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
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