Answer:
Cash $50,800
Accounts receivable $91,700
Inventory $125,700
Land $62,500
Buildings (net) $75,100
Equipment (net) $70,000
Trademarks $15,600
Goodwill $111,180 (Balancing figure)
To Accounts payable $206,000
To Note payable $133,000
To Cash $251,100
(Being the purchase is recorded)
Explanation:
The journal entry is shown below:
Cash $50,800
Accounts receivable $91,700
Inventory $125,700
Land $62,500
Buildings (net) $75,100
Equipment (net) $70,000
Trademarks $15,600
Goodwill $111,180 (Balancing figure)
To Accounts payable $206,000
To Note payable $133,000
To Cash $251,100
(Being the purchase is recorded)
For recording this we debited the assets as it increased the assets and credited the current liabilities as it also show rise in the current liabilities
In addition to this, the balancing figure is debited to goodwill account
Moreover, the fair value of land, inventory ,and trademarks are considered while recording this journal entry
