(Answered) Problem - on july 1 2010 brandon corporation purchased

Accounting

Problem - On July 1, 2010, Brandon Corporation purchased Mills Company by paying $250,000 cash and issuing a $150,000 note payable to Steve Mills. At July 1, 2010, the balance sheet of Mills Company was as follows:

Cash $50,000 Accounts Payable $200,000

Accounts Receivable 90,000 Stockholder's equity 235,000

Inventory 100,000

Land 40,000

Building (net) 75,000

Equipment (net) 70,000

Trademarks 10,000

$435,000

The recorded amounts all approximate current values except for land (fair value of $80,000), inventory (fair value of $125,000), and trademarks (fair value of $15,000).

Prepare the July 1 entry for Brandon Corporation to record the purchase.

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