Question
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
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 $109,450 Accounts payable $50,370 Land 71,400 Notes payable (long-term) 303,060 Buildings (net) 207,100 Total liabilities 353,430 Equipment (net) 178,080 Common stock $248,700 Copyrights (net) 30,070 Retained earnings -6,030 242,670 Total assets $596,100 Total liabilities and stockholders equity $596,100 Moss and Zweifel agree that: 1. Land is undervalued by $51,320. 2. Equipment is overvalued by $5,040. Zweifel agrees to sell the gallery to Moss for $378,420. 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
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