Exercise 12-11

Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Wildhorse Galleries. The balance sheet of Wildhorse is given in an abbreviated form below.

WILDHORSE GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017
Assets				Liabilities and Stockholders Equity
Cash		$121,000		Accounts payable				$49,800
Land		71,600		Notes payable (long-term)				307,100
Buildings (net)		201,600		Total liabilities				356,900
Equipment (net)		176,600		Common stock		$244,500
Copyrights (net)		31,600		Retained earnings		1,000		245,500
Total assets		$602,400		Total liabilities and stockholders equity				$602,400

Moss and Wildhorse agree that:

1.		Land is undervalued by $34,400.
2.		Equipment is overvalued by $4,800.

Wildhorse agrees to sell the gallery to Moss for $379,000. Prepare the entry to record the purchase of Wildhorse Galleries on Mosss books. (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 and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit