Question - Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Crane Galleries. The balance sheet of Crane is given in an abbreviated form below.
CRANE GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017
Assets
Liabilities and Stockholders' Equity
Cash$112,000
Accounts payable$50,300
Land70,700
Notes payable (long-term)299,800
Buildings (net)200,700
Total liabilities350,100
Equipment (net)175,700
Common stock$201,400
Copyrights (net)30,700
Retained earnings38,300
239,700
Total assets$589,800
Total liabilities and stockholders' equity$589,800
Moss and Crane agree that:
1. Land is undervalued by $41,900.2.Equipment is overvalued by $5,000. Crane agrees to sell the gallery to Moss for $378,600.
Prepare the entry to record the purchase of Crane Galleries on Moss's books?