Solution-Prepare the July entry for Grouper Corporation

Prepare the July entry for Grouper Corporation

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Reference no: EM133069535

Question - On July 1, 2020, Grouper Corporation purchased Young Company by paying $253,500 cash and issuing a $139,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows.

Cash	$50,900	Accounts payable	$208,000
Accounts receivable	90,600	Stockholders' equity	243,400
Inventory	110,000		$451,400
Land	41,800
Buildings (net)	75,700
Equipment (net)	71,400
Trademarks	11,000
	$451,400

The recorded amounts all approximate current values except for land (fair value of $64,300), inventory (fair value of $127,000), and trademarks (fair value of $16,880).

Required - Prepare the July 1 entry for Grouper Corporation to record the purchase.

Reference no: EM133069535

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Prepare the July entry for Grouper Corporation

Reference no: EM133069535

Reference no: EM133069535

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