On July 1, 2020, Riverbed Corporation purchased Young Company by paying $256,900 cash and issuing a $132,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows.

Cash		$51,400		Accounts payable		$204,000
Accounts receivable		91,500		Stockholders equity		241,100
Inventory		105,000				$445,100
Land		40,400
Buildings (net)		75,300
Equipment (net)		69,500
Trademarks		12,000
		$445,100

The recorded amounts all approximate current values except for land (fair value of $62,200), inventory (fair value of $126,400), and trademarks (fair value of $15,600).

(a)

(a)

Correct answer iconYour answer is correct.

Prepare the July 1 entry for Riverbed 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.)

Account Titles and Explanation	Debit	Credit
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
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
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
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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List of Accounts

Attempts: 1 of 3 used

(b)

(b)

Prepare the December 31 entry for Riverbed Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3,320. (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.)

Account Titles and Explanation	Debit	Credit
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