ZWEIFEL GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017 Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) Assets $ 50,000 300,000 Cash $100,000 70,000 Land Buildings (net) Equipment (net) Copyrights (net) Total liabilities 200,000 175,000 30,000 350,000 Common stock $200,000 25,000 Retained earnings 225,000 Total assets $575,000 Total liabilities and stockholders' equity $575,000
ZWEIFEL GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017 Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) Assets $ 50,000 300,000 Cash $100,000 70,000 Land Buildings (net) Equipment (net) Copyrights (net) Total liabilities 200,000 175,000 30,000 350,000 Common stock $200,000 25,000 Retained earnings 225,000 Total assets $575,000 Total liabilities and stockholders' equity $575,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
(Accounting for
Check below image for balance sheet.
Moss and Zweifel agree that:
1. Land is undervalued by $30,000.
2. Equipment is overvalued by $5,000.
Zweifel agrees to sell the gallery to Moss for $350,000.
Instructions
Prepare the entry to record the purchase of Zweifel Galleries on Moss’s books.
Transcribed Image Text:ZWEIFEL GALLERIES
BALANCE SHEET
AS OF DECEMBER 31, 2017
Liabilities and Stockholders' Equity
Accounts payable
Notes payable (long-term)
Assets
$ 50,000
300,000
Cash
$100,000
70,000
Land
Buildings (net)
Equipment (net)
Copyrights (net)
Total liabilities
200,000
175,000
30,000
350,000
Common stock
$200,000
25,000
Retained earnings
225,000
Total assets
$575,000
Total liabilities and stockholders' equity
$575,000
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