c12 q4

Fred Moss, owner of Flint Interiors Inc., is negotiating for the purchase of Pina Colada Galleries Ltd. The condensed statement of financial position of Pina Colada follows in an abbreviated form:

PINA COLADA GALLERIES LTD. Statement of Financial Position As at December 31, 2020
Assets				Liabilities and Shareholders Equity
Cash		$128,400		Accounts payable				$ 91,400
Land		70,900		Long-term notes payable				354,000
Building (net)		242,000		Total liabilities				445,400
Equipment (net)		185,600		Common shares		$209,000
Copyright (net)		98,500		Retained earnings		71,000		280,000
Total assets		$725,400		Total liabilities and shareholders equity				$725,400

Flint and Pina Colada agree that the land is undervalued by $40,800 and the business equipment is overvalued by $12,500. Pina Colada agrees to sell the business to Flint for $383,500. Prepare the entry to record the purchase of the businesss net assets on Flints books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2020