On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Receivables Inventory Copyrights Patented technology Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equities Carrying Amount 189,500 90,000 154,500 854,000 $ 1,288,000 207,000 686,000 100,000 295,000 $ 1,288,000 Fair Value $ 189,500 90,000 526,500 675,000 $ 1,481,000 207,000 667,200 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $114,500 to an investment banking firm. The following information was also available: Zambrano further agreed to pay an extra $80,200 to the former owners of Soriano only if they meet certain revenue goals during the next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at $40,100. Soriano has a research and development project in process with an appraised value of $216,000. However, the project has not yet reached technological feasibility and the project's assets have no alternative future use. a&b. Prepare Zambrano's journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (a) $764,600 & (b) $877,900. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the acquisition of Soriano Co. Assume its initial cash payment to the former owners was $764,600. Note: Enter debits before credits. Transaction Debit Credit 1 189,500 90,000 General Journal Receivables Inventory Copyrights Patented technology Research and development asset Current liabilities Long-term liabilities Cash Contingent performance liability Gain on bargain purchase 216,000 207,000 40,100 Record entry Clear entry View general journal Journal entry worksheet Record the expenses related to the combination. Assume its initial cash payment to the former owners was $764,600. Note: Enter debits before credits. Transaction General Journal Debit Credit 2. Record entry Clear entry View general journal Journal entry worksheet Record the acquisition of Soriano Co. Assume its initial cash payment to the former owners was $877,900. Note: Enter debits before credits. Transaction General Journal Debit Credit 3 Record entry Clear entry View general journal Journal entry worksheet