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On July 1, 2025, Novak Corporation purchased Young Company by oaying $260,300 cash and issuing...

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Accounting

On July 1, 2025, Novak Corporation purchased Young Company by oaying $260,300 cash and issuing a $128,000 note payable to Steve Young. At July 1 2025 the balance sheet of Young Company was as follows.
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On July 1,2025, Novak Corporation purchased Young Company by paying $260,300 cash and issuing a $128,000 note payable to Steve Young. At July 1, 2025, the balance sheet of Young Company was as follows. The recorded amounts all approximate current values except for land (fair value of $62,300 ), inventory (fair value of $125,100 ), and trademarks (fair value of $17,520 ). (a) Prepare the July 1 entry for Novak 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 ond enter O for the amounts. List all debit entries before credit entries.)

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