Fred Moss, owner of Moss Interior's purchased Zweifel Galleries for $350,000.00 The following balance sheet of Zweifel is given in an abbreviated form Zweifel Galleries Balance Sheet As of December 31, 2017 Assets: Cash: 100,000 Land: 70,000 Buildings(net) 200,000 Equipment(net) 175,000 Copyrights(net) 30,000 Total Assets: 575,000 Liabilities & Stockholders Equity: A/P 50,000 Notes Payable(L/T) 300,000 Total Liabilities 350,000 Common Stock 200,00 Retained Earnings 25,000 Total Liabilities & Stockholders Equity 575,000 Moss and Zweifel agree that: 1. Land is undervalued by $30,000 2. Equipment is overvalued by $5,000 Instructions: Prepare the entry to record the purchase of Zweifel Galleries on Moss's Books.
Fred Moss, owner of Moss Interior's purchased Zweifel Galleries for $350,000.00 The following
Zweifel Galleries
Balance Sheet
As of December 31, 2017
Assets:
Cash: 100,000
Land: 70,000
Buildings(net) 200,000
Equipment(net) 175,000
Copyrights(net) 30,000
Total Assets: 575,000
Liabilities &
A/P 50,000
Notes Payable(L/T) 300,000
Total Liabilities 350,000
Common Stock 200,00
Total Liabilities & Stockholders Equity 575,000
Moss and Zweifel agree that:
1. Land is undervalued by $30,000
2. Equipment is overvalued by $5,000
Instructions: Prepare the entry to record the purchase of Zweifel Galleries on Moss's Books.
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