Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me with journal entries for 2, 3 and 4 for the problem below. Journal entry worksheet Record the expenses related to the combination.
Please help me with journal entries for 2, 3 and 4 for the problem below.
Journal entry worksheet Record the expenses related to the combination. Assume its initial cash payment to the former owners was $806,500. Note: Enter debits before credits. - Soriano has a research and development project in process with an appraised value of $213,000. 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) $806,500 \& (b) $916,900. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the expenses related to the combination. Assume its initial cash payment to the former owners was $916,900. Note: Enter debits before credits. Record the acquisition of Soriano Co. Assume its initial cash payment to the former owners was $806,500. Note: Enter debits before credits. On May 1 , Soriano Co. reported the following account balances along with their estimated fair values: 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 $137,500 to an investment banking firm. The following information was also available: - Zambrano further agreed to pay an extra $87,200 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 $43,600. Record the acquisition of Soriano Co. Assume its initial cash payment to the former owners was $916,900. Note: Enter debits before creditsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started