Exercise 12-11 Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Sandhill Galleries. The balance sheet of Sandhill is given in an abbreviated form below. Assets Cash Land Buildings (net) Equipment (net) Copyrights (net) Total assets $109,000 70,400 200,400 175,400 30,400 $585,600 SANDHILL GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017 Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) Total liabilities Common stock Retained earnings Total liabilities and stockholders' equity $50,700 301,700 352,400 $230,600 2,600 233,200 $585,600 Moss and Sandhill agree that: 1. Land is undervalued by $37,800. 2. Equipment is overvalued by $4,900. Sandhill agrees to sell the gallery to Moss for $381,500. Prepare the entry to record the purchase of Sandhill Galleries on Moss's 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 for the amounts.) Account Titles and Explanation Debit Credit