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Please help! The Goodwill debit of 447400 is the only answer that is incorrect! On July 1, 2020, Novak Corporation purchased Young Company by paying
Please help! The Goodwill debit of 447400 is the only answer that is incorrect!
On July 1, 2020, Novak Corporation purchased Young Company by paying $260,300 cash and issuing a $128,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Accounts payable Stockholders' equity $ 202,000 245,400 $447,400 Cash Accounts receivable Inventory Land Buildings (net) Equipment (net) Trademarks $50,900 91,500 108,000 40,000 74.800 70,500 11,700 $447.400 The recorded amounts all approximate current values except for land (fair value of $62,300), inventory (fair value of $125,100), and trademarks (fair value of $17,520). (a) Your answer is partially correct. Prepare the July 1 entry for Novak 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 for the amounts.) Account Titles and Explanation Debit Credit Cash 50900 Accounts Receivable 91500 Inventory 125100 Land 62300 Buildings 74800 Equipment 70500 Trademarks 17520 Goodwill 447400 Accounts Payable 202000 Cash 260300 Notes Payable 128000Step by Step Solution
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