please help. example problem

Problem

The Logan Company is purchasing the Nylon Sail Company.

The Nylon Sail Company's Balance Sheet information on June 30, 2020 is as follows:

Assets

Cash $ 43,600

Accounts Receivable 55,800

Inventories 141,000

Land 95,000

Building, net 368,000

Equipment, net 39,760

Patent 55,000

Trademark 5,000

Total Assets $803,160

Liabilities

Accounts Payable $ 77,440

Stockholders' Equity

Common Stock $600,000

Retained Earnings 125,720

Total Liabilities and

Stockholder's Equity $803,160

Logan Company will pay $800,000 cash down, sign and issue a Note Payable to Nylon

Sail Company in the amount of $500,000, and assume the Accounts Payable. All

assets listed in the balance sheet will be acquired by Logan Company at their listed

amounts, with the exception of the following assets which will be acquired at their

agreed fair values as follows:

Inventories $175,300

Land $145,000

Building $502,000

Patent $85,000

Trademark $25,000

Solve

1. Prepare the journal entries on Logan Company's books to record the purchase.

2. Prepare the journal entry on Nylon Sail Company's books to record the sale.

3 Prepare list of the specific components of the gain for Nylon Sail Company.

4.Prepare the Balance Sheet for Nylon Sail Company as of June 30, 2020

immediately after the sale to Logan Company.