On May 1, Soriano Co reported the following account balances along with their estimated fair values Carrying Amount Fair Value Receivables $ 144,100 $ 144,100 Inventory 77,400 77,400 Copyrights 135,500 509,500 Patented technology 901,000 744,000 Total assets $ 1,258,000 $ 1,475,000 Current liabilities $ 235,000 $ 235,000 Long term liabilities 686,000 671,300 Common stock 100,000 Retained earnings 237,000 Total liabilities and equities $ 1,258,000 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 $133,500 to an investment banking firm The following information was also available Zambrano further agreed to pay an extra $87,600 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 $43,800 Soriano has a research and development project in process with an appraised value of $236,000 However, the project has not yet reached technological feasibility and the projects assets have no alternative future use Prepare Zambranos journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (If no entry is required for a transaction event, select No journal entry required in the first account field ) a $745,000 General Journal Debit Credit Copyrights Inventory Paternted technology Receivables Research and development assest Cash Contingent performance liability Gain on bargain purchase Long term liabilities N A N A N A N A N A N A N A N A N A General Journal Debit Credit Professional services expense Cash B $848,700 General Journal Debit Credit Copyrights Inventory Goodwill Patented technology Receivables Research and development asset Cash Contingent performance liability Current liabilities Long term liabilities General Journal Debit Credit Professional services expense Cash

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Posted on Jul 31, 2024

On May 1, Soriano Co. reported the following account balances along with their estimated fair values: Carrying Amount Fair Value Receivables $ 144,100 $ 144,100

On May 1, Soriano Co. reported the following account balances along with their estimated fair values:

	Carrying Amount		Fair Value
Receivables	$	144,100	$	144,100
Inventory		77,400		77,400
Copyrights		135,500		509,500
Patented technology		901,000		744,000

Total assets	$	1,258,000	$	1,475,000

Current liabilities	$	235,000	$	235,000
Long-term liabilities		686,000		671,300
Common stock		100,000
Retained earnings		237,000

Total liabilities and equities	$	1,258,000

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 $133,500 to an investment banking firm.

The following information was also available:

	Zambrano further agreed to pay an extra $87,600 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 $43,800.
	Soriano has a research and development project in process with an appraised value of $236,000. However, the project has not yet reached technological feasibility and the projects assets have no alternative future use.

Prepare Zambranos journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a.	$745,000.

General Journal	Debit	Credit
Copyrights
Inventory
Paternted technology
Receivables
Research and development assest
Cash
Contingent performance liability
Gain on bargain purchase
Long-term liabilities
N/A	N/A	N/A
N/A	N/A	N/A
N/A	N/A	N/A

General Journal	Debit	Credit
Professional services expense	???
Cash		???

B. $848,700

General Journal	Debit	Credit
Copyrights
Inventory
Goodwill
Patented technology
Receivables
Research and development asset
Cash
Contingent performance liability
Current liabilities
Long-term liabilities