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

Kevin 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 Gallaries Balance Sheet As of December 31, 2020

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

$216,000

Copyrights (net)

31,600

Retained earnings

29,500

245,500

Total assets

$602,400

Total liabilities and stockholders equity

$602,400

Moss and Wildhorse agree that:

1. Land is undervalued by $30,000.
2. Equipment is overvalued by $5,000.

Wildhorse agrees to sell the gallery to Moss for $350,000. Prepare the entry to record the purchase of Wildhorse Galleries on Mosss books.

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