E12-12 (Accounting for Goodwill) Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Zweifel Galleries. The balance sheet of Zweifel is given in an abbreviated form below.

Liabilities and Stockholder's Equity

Assets Liabiltiies and Stockholder's Equity

Cash $100,000 Accounts payable 50,000

Land $70,000 Notes payables( long- term ) 300,000

Building Net $200,000 Total liabilities 350,000

Equipment Net $175,000 Common Stock 200,000

Copyright net 30,000 Retained earnings 25,000 225,000

Total Liabilties and Stockholder's equity 575,000

Moss and Zweifel agree that :

1. Land is undervalued by 30,000

2 equipment is ocer valued by 5,000

Zweifel agrees to sell the gallary to Moss for 350,000

Instructions:

Prepare the entry to record the purchase of Zweifel's Galleries on Moss's books