Exercise 12-12

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.

ZWEIFEL GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2014
Assets	Liabilities and Stockholders Equity
Cash	$110,590	Accounts payable	$49,710
Land	70,530	Notes payable (long-term)	299,530
Buildings (net)	200,300	Total liabilities	349,240
Equipment (net)	175,680	Common stock	$230,500
Copyrights (net)	29,660	Retained earnings	7,020	237,520
Total assets	$586,760	Total liabilities and stockholders equity	$586,760

Moss and Zweifel agree that:

1.	Land is undervalued by $50,700.
2.	Equipment is overvalued by $4,680.

Zweifel agrees to sell the gallery to Moss for $380,470.

Prepare the entry to record the purchase of Zweifel Galleries on Mosss books. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit