Fred Moss, owner of Medici Interiors Inc., is negotiating for the purchase of Athenian Galleries Ltd. The condensed statement of financial position of Athenian follows in an abbreviated form:

Medici and Athenian agree that the land is undervalued by $40,000 and the business equipment is overvalued by $12,000. Athenian agrees to sell the business to Medici for $382,000.
Instructions
Prepare the entry to record the purchase of the business's net assets on Medici's books.

Transcribed Image Text:

ATHENIAN GALLERIES LTD. Statement of Financial Position As at December 31, 2014 Assets Cash Land Building (net) Equipment (net) Copyright (net) Total assets Liabilities and Shareholders' Equity Accounts payable Long-term notes payable Total liabilities Common shares Retained earnings Total liabilities and shareholders' equity $92,000 351,000 443,000 $118,000 70,000 244,000 185,000 98,000 $715,000 $200,000 72,000 272,000 $715,000