The Bird Company is purchasing the Fish Sail Company.

The Fish Sail Company's Balance Sheet information on June 30, 2018 is as follows:

Assets

Cash $ 43,600

Accounts Receivable 55,800

Inventories 141,000

Land 95,000

Building, net 368,000

Equipment, net 39,760

Patent 55,000

Trademark 5,000

Total Assets $803,160

Liabilities

Accounts Payable $ 77,440

Stockholders' Equity

Common Stock $600,000

Retained Earnings 125,720

Total Liabilities and

Stockholder's Equity $803,160

Bird Company will pay $800,000 cash down, sign and issue a Note Payable to Fish Sail Company in the amount of $500,000, and assume the Accounts Payable. All assets listed in the balance sheet will be acquired by Bird Company at their listed amounts, with the exception of the following assets which will be acquired at their agreed fair values as follows:

Inventories $175,300

Land $145,000

Building $502,000

Patent $85,000

Trademark $25,000

Solve

1. Prepare the journal entries on Bird Company's books to record the purchase.

2. Prepare the journal entry on Fish Sail Company's books to record the sale.

3 Prepare list of the specific components of the gain for Fish Sail Company.

4.Prepare the Balance Sheet for Fish Sail Company as of June 30, 2018 immediately after the sale to Bird Company.