Fred Moss, owner of Riverbed Interiors Inc., is negotiating for the purchase of

Question

Fred Moss, owner of Riverbed Interiors Inc., is negotiating for the purchase of Concord Galleries Ltd. The condensed statement of financial position of Concord follows in an abbreviated form: CONCORD GALLERIES LTD. Statement of Financial Position r 31, 2017 Liabilities and Shareholders' Equity As at Assets Cash Land Building (net) Equipment (net) Copyright (net) Total assets $91,000 359,000 450,000 $125,300 Accounts payable 7 0,000 Long-term notes payable 246,000 Totl labilities 184,600 Common shares $200,000 97,000 Retained carnings 72,900 272,900 $722,900 Total liabilities and shareholders' equity $722,900 erbed and Concord agree that the land is undervalued by 40,300 and the business equipment is overvalued by $11,000. Concord agrees to sell the business to Riverbed ror $383,8 Prepare the entry to record the purchase of the business's net assets on Riverbed's books. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 25300 nd Ildings 84600 Payable

Explanation / Answer

Cash 125300 Land 110300 Building 246000 Equipment 173600 Copyright 97000 Goodwill 81600         Accounts Payable 91000          Long-term Notes Payable 359000          Cash 383800

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