Exercise 12-11 Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Blossom Galleries. The balance sheet of Blossom is given in an abbreviated form below. BLOSSOM GALLERIESBALANCE SHEETAS OF DECEMBER 31, 2017 Assets Liabilities and Stockholders’ Equity Cash $111,000 Accounts payable $50,800 Land 70,600 Notes payable (long-term) 301,200 Buildings (net) 200,600 Total liabilities 352,000 Equipment (net) 175,600 Common stock $206,600 Copyrights (net) 30,600 Retained earnings 29,800 236,400 Total assets $588,400 Total liabilities and stockholders’ equity $588,400 Moss and Blossom agree that: 1. Land is undervalued by $31,400. 2. Equipment is overvalued by $4,600. Blossom agrees to sell the gallery to Moss for $379,000.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 0 for the amounts.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work please answer all parts of the question

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter13: Capital Structure And Leverage

Section: Chapter Questions

Problem 13P

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Exercise 12-11

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

BLOSSOM GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017
Assets		Liabilities and Stockholders’ Equity
Cash	$111,000	Accounts payable		$50,800
Land	70,600	Notes payable (long-term)		301,200
Buildings (net)	200,600	Total liabilities		352,000
Equipment (net)	175,600	Common stock	$206,600
Copyrights (net)	30,600	Retained earnings	29,800	236,400
Total assets	$588,400	Total liabilities and stockholders’ equity		$588,400

Moss and Blossom agree that:

1.		Land is undervalued by $31,400.
2.		Equipment is overvalued by $4,600.

Blossom agrees to sell the gallery to Moss for $379,000.

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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Click if you would like to Show Work for this question:

Open Show Work

please answer all parts of the question

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