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https//edugen wileyplus.com/edugen/student/mainfr.un IHelp I ContactUs I Leu0 JS Kieso, Intermediate Accounting, 16e INTERMEDIATE ACCT (ACT311 &312 Practice Assignment Gradebook ORION Downloadable eTextbook signment CALCULATOR | , FULLSCREEN PRNTER VERSION -BACK NEXT ES Exercise 12-11 Your answer is partially correct. Try again. Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Sandhill Galleries. The balance sheet of Sandhil is given in an abbreviated form below SANDHILL GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017 Assets Cash Land $120,000 71,500 Liabilities and Stockholders" Equity Accounts payable Notes payable (long-term) udy $51,100 302,800 353,900 Buildings (net) 201,500 Equipment (net) 176,500 Common stock Copyrights (net) 31.500 Retained earnings Total assets Total iabilities 225,900 21,200 247.100 $601,000 $601,000 Total liabilities and stockholders' equity Paa Moss and Sandhill agree that: 1. Land is undervalued by $48,100 2. Equipment is overvalued by $5,400. 31 Sandhill agrees to sell the gallery to Moss for $379,800 Prepare the entry to record the purchase of Sandhill 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 Part E 31-D All Rights Reserved. A Division of Version 4.24.9 Part C No jourr Practice v

Explanation / Answer

Account title and explanation Debit ($) Credit ($) Cash 120,000 Copyrights     31,500 Buildings 201,500 Equipment (201,500-5,400) 196,100 Land (71,500+48,100) 119,600 Goodwill     65,000 Accounts payable           51,100 Notes payable         302,800 Cash         379,800 (Purchase of Sandhill Gallery)

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