Question 3

On July 1, 2017, Cheyenne Corporation purchased Young Company by paying $257,000cash and issuing a $127,000note payable to Steve Young. At July 1, 2017, the balance sheet of Young Company was as follows.

Cash$51,400

Accounts payable$204,000

Accounts receivable91,100

Stockholders? equity242,100

Inventory105,000

$446,100

Land41,600

Buildings (net)74,900

Equipment (net)70,700

Trademarks

11,400

$446,100

The recorded amounts all approximate current values except for land (fair value of $60,400), inventory (fair value of $126,100), and trademarks (fair value of $16,160).

Prepare the July 1 entry for Cheyenne 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

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

Prepare the December 31 entry for Cheyenne Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3,360.(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

Question 3 On July 1, 2017, Cheyenne Corporation purchased Young Company by paying $257,000 cash and issuing a $127,000 note payable to Steve Young. At July 1, 2017, the balance sheet of Young Company was as follows. Cash Accounts receivable $51,400 91,100 Inventory 105,000 Land 41,600 Buildings (net) 74,900 Equipment (net) 70,700 Trademarks Accounts payable Stockholders' equity $204,000 242,100 $446,100 11,400 $446,100 The recorded amounts all approximate current values except for land (fair value of $60,400), inventory (fair value of $126,100), and trademarks (fair value of $16,160). Prepare the July 1 entry for Cheyenne 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 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare the December 31 entry for Cheyenne Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3,360. (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