Question

On July 1, 2020, Martinez Corporation purchased Young Company by paying $259,000 cash and issuing a...

On July 1, 2020, Martinez Corporation purchased Young Company by paying $259,000 cash and issuing a $128,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows.

Cash

$50,400

Accounts payable

$206,000

Accounts receivable

89,500

Stockholders’ equity

238,500

Inventory

105,000

$444,500

Land

41,500

Buildings (net)

75,300

Equipment (net)

70,900

Trademarks

11,900

$444,500


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 $15,680).

Partially correct answer iconYour answer is partially correct.

Prepare the July 1 entry for Martinez 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

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

  

  

Partially correct answer iconYour answer is partially correct.

Prepare the December 31 entry for Martinez Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $4,440. (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

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

Homework Answers

Answer #1
Account Titles and Explanation Debit Credit
Cash 50400
Accounts receivable 89500
Inventory 126100
Land 60400
Buildings 75300
Equipment 70900
Trademarks 15680
Goodwill 104720
       Accounts payable 206000
       Note payable 128000
       Cash 259000
Account Titles and Explanation Debit Credit
Amortization expense 1405 =(15680-4440)/4*6/12
      Trademarks 1405
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On December 31, 2020, Martinez Inc. has a machine with a book value of $1,391,200. The...
On December 31, 2020, Martinez Inc. has a machine with a book value of $1,391,200. The original cost and related accumulated depreciation at this date are as follows. Machine $1,924,000 Less: Accumulated depreciation 532,800 Book value $1,391,200 Depreciation is computed at $88,800 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update...
During its first year of operations, Swifty Corporation had the following transactions pertaining to its common...
During its first year of operations, Swifty Corporation had the following transactions pertaining to its common stock. Jan. 10 Issued 69,500 shares for cash at $7 per share. July    1 Issued 38,000 shares for cash at $10 per share. Partially correct answer iconYour answer is partially correct. Journalize the transactions, assuming that the common stock has a par value of $7 per share. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when...
Swifty Corporation purchased 400 common shares of Sigma Inc. for trading purposes for $12,800 on September...
Swifty Corporation purchased 400 common shares of Sigma Inc. for trading purposes for $12,800 on September 8 and accounted for the investment under ASPE at FV-NI. In December, Sigma declared and paid a cash dividend of $1.70 per share. At year end, December 31, Sigma shares were selling for $35.60 per share. In late January, Swifty sold the Sigma shares for $34.91 per share. Prepare Swifty Corporation’s journal entry to record the purchase of the investment. (Credit account titles are...
On December 31, 2020, Oriole Co. performed environmental consulting services for Hayduke Co. Hayduke was short...
On December 31, 2020, Oriole Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Oriole Co. agreed to accept a $346,500 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Oriole is much more creditworthy and has various lines of credit at 6%. Partially correct answer iconYour answer is partially correct. Prepare the journal entry to record the...
On April 1, 2020, Indigo Corporation assigns $490,000 of its accounts receivable to First National Bank...
On April 1, 2020, Indigo Corporation assigns $490,000 of its accounts receivable to First National Bank as collateral for a $200,000 loan that is due July 1, 2020. The assignment agreement calls for Indigo to continue to collect the receivables. First National Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 8%, a realistic rate for a note of this type. Prepare the April 1, 2020 journal entry for Indigo Corporation. (Credit...
Blossom Corp. purchased a put option on Mykia common shares on July 7, 2020, for $467....
Blossom Corp. purchased a put option on Mykia common shares on July 7, 2020, for $467. The put option is for 350 shares, and the strike price is $45. The option expires on January 31, 2021. The following data are available with respect to the put option: Fair Value Market Price Date of Option of Mykia Shares Sept. 30, 2020 $228 $52 per share Dec. 31, 2020 $101 $54 per share Jan. 31, 2021 $0 $58 per share Prepare the...
Martinez Construction Company began work on a $419,500 construction contract in 2020. During 2020, Martinez incurred...
Martinez Construction Company began work on a $419,500 construction contract in 2020. During 2020, Martinez incurred costs of $282,500, billed its customer for $232,500, and collected $181,000. At December 31, 2020, the estimated additional costs to complete the project total $164,140. Prepare Martinez’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
Presented below is information related to equipment owned by Waterway Company at December 31, 2020. Cost...
Presented below is information related to equipment owned by Waterway Company at December 31, 2020. Cost $10,710,000 Accumulated depreciation to date 1,190,000 Expected future net cash flows 8,330,000 Fair value 5,712,000 Waterway intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $23,800. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the...
Hive Company borrows $90,000 on July 1 from the bank by signing a $90,000, 7%, 1-year...
Hive Company borrows $90,000 on July 1 from the bank by signing a $90,000, 7%, 1-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 enter an account title to record the proceeds of the note enter a debit amount enter a credit amount enter an account title to record the proceeds...
Presented below is information related to copyrights owned by Cullumber Company at December 31, 2020. Cost...
Presented below is information related to copyrights owned by Cullumber Company at December 31, 2020. Cost $8,590,000 Carrying amount 4,430,000 Expected future net cash flows 4,190,000 Fair value 3,330,000 Assume that Cullumber Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Prepare the journal entry to record the impairment of the asset at December 31, 2020. The company does not use...