Question 7 Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Blossom...
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Question 7 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 Land Buildings (net) Equipment (net) Copyrights (net) Total assets $111,000 Accounts payable $50,800 301 200 352,000 70,600 Notes payable (long-term) 200,600 175,600 30,600 588,400 Total liabilities Common stock Retained earnings Total liabilities and stockholders' equity $206,600 29.800 236,400 $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 O for the amounts.) Account Titles and Explanation Debit Credit
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