Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 1, 2020, Marigold Corporation purchased the net assets of Soorya Company by paying $444,000 cash and issuing a $49.200 note payable to Soorya

image text in transcribed
image text in transcribed
On July 1, 2020, Marigold Corporation purchased the net assets of Soorya Company by paying $444,000 cash and issuing a $49.200 note payable to Soorya Company. At July 1, 2020, the statement of financial position of Soorya Company was as follows: Cash $75,800 Accounts payable $319,000 Accounts receivable 106,000 Soorya, capital 235,000 Inventory 96,300 Total $554,000 Land 48.400 Buildings (net) 75.800 Equipment (net) 101.800 Trademarks (net 49.900 Total $554.000 The recorded amounts all approximate current values except for tarid (worth $58.400). Inventory (worth $127.800), 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 $19.000, $27,000, and $49,000, respectively. Your answer is partially correct. Prepare the July 1, 2020 entry for Marigold Corporation to record the purchase. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit July 1, Cash 2020 75800 Accounts Receivable Inventory 127800 Land 58400 Buildings 75000 Equipment 101800 Good 266600 Allowance for Doubt Accounts 44000 Notes Payable 49200 Accounts Park 319000 Prepare the July 1, 2020 entry for Marigold Corporation to record the purchase. Assume that the purchase price was $203,900,all paid in cash. (Credit account titles are outomatically indented when the amount is entered. Do not Indent manual) Account Titles and Explanation Debit Credit Date July 1 2020 Cash 75800 Accounts Receivable Inventory 127800 Land 58400 Buildings 75800 Equiment 101800 Goodwill Accumulated Impairment losses-Trademark Accounts Payable 319000 Cash e Textbook and Media Your answer is partially correct Based on partial assume now that Marigold is a public entity and tested its goodwill for imairment on December 31, 2021. The cash-generating unit's values (including goodwill) are as to follows: Carrying amount Value in use Fair value Disposal costs 5516,000 431.000 458,000 28.000 Determine if there is any impairment and prepare any necessary entry on December 31, 2021. Credit accounts are automatically indented when the amount is entered Do not indent manually. If no untry is required, select "No entry for the count titles and enter for the amounts) Account Titles and Explanation Debit Credit Dec 31, Loss on impairment Date 2021 Accumulated impairment Goodwill

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 25 - Change In Auditors

Authors: Kate Mooney

3rd Edition

0071719474, 9780071719476

More Books

Students also viewed these Accounting questions

Question

BPR always involves automation. Group of answer choices True False

Answered: 1 week ago