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Daniel Moss, owner of Moss Interiors, is negotiating for the purchase of Blossom Galleries. The following balance sheet of Blossom is given in an abbreviated form as follows. Cash Land Assets Buildings (net) Equipment (net) Copyrights (net) Total assets 1. 2. $111.000 70,600 200,600 175,600 30,600 $588,400 Moss and Blossom agree that: Blossom Gallaries Balance Sheet As of December 31, 2025 Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) Total liabilities Common stock Retained earnings Total liabilities and stockholders' equity Land is undervalued by $31,000. Equipment is overvalued by $6,000. $206,600 29,800 $50,800 301,200 352,000 236,400 $588,400 Blossom agrees to sell the gallery to Moss for $315,000. Prepare the entry to record the purchase of Blossom 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 O for the amounts. List all debit entries before credit entries.)

Daniel Moss, owner of Moss Interiors, is negotiating for the purchase of Blossom Galleries. The following balance sheet of Blossom is given in an abbreviated form as follows. Cash Land Assets Buildings (net) Equipment (net) Copyrights (net) Total assets 1. 2. $111.000 70,600 200,600 175,600 30,600 $588,400 Moss and Blossom agree that: Blossom Gallaries Balance Sheet As of December 31, 2025 Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) Total liabilities Common stock Retained earnings Total liabilities and stockholders' equity Land is undervalued by $31,000. Equipment is overvalued by $6,000. $206,600 29,800 $50,800 301,200 352,000 236,400 $588,400 Blossom agrees to sell the gallery to Moss for $315,000. Prepare the entry to record the purchase of Blossom 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 O for the amounts. List all debit entries before credit entries.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Daniel Moss, owner of Moss Interiors, is negotiating for the purchase of Blossom Galleries. The following balance sheet of Blossom is given in an abbreviated form as follows. Cash Land Assets Buildings (net) Equipment (net) Copyrights (net) Total assets $111,000 70,600 200,600 175,600 30,600 2. $588,400 Moss and Blossom agree that: Blossom Gallaries Balance Sheet As of December 31, 2025 1. Land is undervalued by $31,000. Equipment is overvalued by $6,000. Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) Total liabilities Common stock Retained earnings Total liabilities and stockholders' equity $206,600 29,800 $50,800 301,200 352,000 236,400 $588,400 Blossom agrees to sell the gallery to Moss for $315,000. Prepare the entry to record the purchase of Blossom 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 O for the amounts, List all debit entries before credit entries.)
Transcribed Image Text:Daniel Moss, owner of Moss Interiors, is negotiating for the purchase of Blossom Galleries. The following balance sheet of Blossom is given in an abbreviated form as follows. Cash Land Assets Buildings (net) Equipment (net) Copyrights (net) Total assets $111,000 70,600 200,600 175,600 30,600 2. $588,400 Moss and Blossom agree that: Blossom Gallaries Balance Sheet As of December 31, 2025 1. Land is undervalued by $31,000. Equipment is overvalued by $6,000. Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) Total liabilities Common stock Retained earnings Total liabilities and stockholders' equity $206,600 29,800 $50,800 301,200 352,000 236,400 $588,400 Blossom agrees to sell the gallery to Moss for $315,000. Prepare the entry to record the purchase of Blossom 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 O for the amounts, List all debit entries before credit entries.)
Account Titles and Explanation Debit Credit
Transcribed Image Text:Account Titles and Explanation Debit Credit
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