E12-11 (L03) (Accounting for Goodwill) Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Zweifel Galler ies. The following balance sheet of Zweifel is given in an abbreviated form as follows. ZWEIFEL GALLERIES BALANCE SHEET As OF DECEMBER 31, 2017 Assets Cash Land Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) $100,000 70,000 200,000 175,000 $ 50,000 300,000 350,000 Buildings (net) Equipment (net) Copyrights (net) Total assets Total liabilities Common stock $200,000 25,000 30,000Retained earnings 225,000 $575,000 $575,000 Total liabilities and stockholders equity Moss and Zweifel agree that: 1. Land is undervalued by $30,000. 2. Equipment is overvalued by $5,000. Zweifel agrees to sell the gallery to Moss for $350,000. Instructions Prepare the entry to record the purchase of Zweifel Galleries on Moss's books