Question

Cash $108,000 Accounts payable $51,500 Land 70,300 Notes payable (long-term) 300,900 Buildings (net) 200,300 Total liabilities 352,400 Equipment (net) 175,300 Common stock $210,000 Copyrights (net) 30,300 Retained earnings 21,800 231,800 Total assets $584,200 Total liabilities and stockholders’ equity $584,200 Moss and Carla Vista agree that: 1. Land is undervalued by $30,000. 2. Equipment is overvalued by $5,000. Carla Vista agrees to sell the gallery to Moss for $350,000. Prepare the entry to record the purchase of Carla Vista Galleries on Moss’s books.

Answer 1

Answer:

The accounts receivables , notes payable and to purchase considerations are recorded under CREDIT on moss books because this are monetary values received by Moss

Explanation:

Attached to this is the tabular form of the entry of the purchase of Carla Vista galleries on Moss books. the accounts receivables , notes payable and to purchase considerations are recorded under CREDIT on moss books because this are monetary values received by Moss

Answer 2

Answer:

Explanation:

Assets                                         Adjustment

Cash $108000                                                               108000

Land $70300                              30000                        100300

Building $200300                                                          200300

Equipment $175300                   (5000)                         170300

Copyright $30300                                                          30300

Total                                                                                 609200

Account payable $51500

Note payable $300900

Sale value       $350000

Total                702400

Goodwill = 702400-$609200= $93,200