Moss and Carla Vista agree that: 1. Land is undervalued by $32,900. 2. Equipment is overvalued by $5,000. Carla Vista agrees to sell the gallery to Moss for $379,400.

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.   Balance Sheet (Millions of $) 2021 Assets   Cash and securities   $ 4,200   Accounts receivable     17,500   Inventories     20,300   Total current assets   $ 42,000   Net plant and equipment     28,000   Total assets   $ 70,000     Liabilities and Equity   Accounts payable   $ 27,531   Accruals     12,369   Notes payable     5,000   Total current liabilities   $ 44,900   Long-term bonds     9,000   Total liabilities   $ 53,900   Common stock     3,864   Retained earnings     12,236   Total common equity   $ 16,100   Total liabilities and equity   $ 70,000     Income Statement (Millions of $) 2021 Net sales   $ 112,000   Operating costs except depreciation     104,160   Depreciation…

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.   Balance Sheet (Millions of $) 2021 Assets   Cash and securities   $ 4,200   Accounts receivable     15,000   Inventories     16,800   Total current assets   $ 36,000   Net plant and equipment     24,000   Total assets   $ 60,000     Liabilities and Equity   Accounts payable   $ 18,048   Accruals     10,152   Notes payable     5,000   Total current liabilities   $ 33,200   Long-term bonds     10,000   Total liabilities   $ 43,200   Common stock     3,864   Retained earnings     12,936   Total common equity   $ 16,800   Total liabilities and equity   $ 60,000     Income Statement (Millions of $) 2021 Net sales   $ 66,000   Operating costs except depreciation     61,380   Depreciation…

Prepare the July 1 entry for Pronghorn Corporation to record the purchase

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Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Zweifel Galleries. The following balance sheet of Zweifel is given in an abbreviated form below. Zweifel Galleries Balance Sheet As of December 31, 2020 Assets   Liabilities and Stockholders' Equity     Cash $100,000 Accounts payable   $ 50,000 Land   70,000 Notes payable (long-term)    300,000 Buildings (net)  200,000     Total liabilities   350,000 Equipment (net) 175,000 Common stock $200,000   Copyrights (net)   30,000 Retained earnings   25,000  225,000 Total assets $575,000 Total liabilities and stockholders' equity   $575,000 Moss and Zweifel agree that: 1. Land is undervalued by $30,000. 2. Equipment is overvalued by $5,000. Zweifel agrees to sell the gallery to Moss for $350,000. Instructions Prepare the entry to record the purchase of Zweifel Galleries on Moss's books.

On July 1, 2020, Brigham Corporation purchased Young Company by paying $250,000 cash and issuing a $100,000 note payable to Steve Young. At July 1, 2017, the balance sheet of Young Company was as follows. Cash $ 50,000 Accounts payable $200,000 Accounts receivable   90,000 Stockholders' equity  235,000 Inventory  100,000   $435,000 Land   40,000     Buildings (net)   75,000     Equipment (net)   70,000     Trademarks   10,000       $435,000     The recorded amounts all approximate current values except for land (fair value of $60,000), inventory (fair value of $125,000), and trademarks (fair value of $15,000). Instructions a. Prepare the July 1 entry for Brigham Corporation to record the purchase. b. Prepare the December 31 entry for Brigham Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3,000.

Shamrock Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. SHAMROCK COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash $236,500 Accounts receivable (net) 346,500 Inventory (lower-of-average-cost-or-market) 407,500 Equity investments (marketable)-at cost (fair value $126,500) 146,500 Property, plant, and equipment Buildings (net) 576,500 Equipment (net) 166,500 Land held for future use 181.500 Intangible assets Goodwill 86,500 Cash surrender value of life insurance 96,500 Prepaid expenses 18,500 Current liabilities Accounts payable 141.500 Notes payable (due next year) 131,500 Pension obligation 88,500 Rent payable 55,500 Premium on bonds payable 59,500 Long-term liabilities Bonds payable 506,500 Stockholders' equity Common stock, $1.0 par, authorized 400,000 shares, issued 296,500 296,500 Additional paid-in capital 166,500 Retained earnings Prepare a revised…

On July 1, 2020, Flounder Corporation purchased Young Company by paying $261,000 cash and issuing a $143,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Cash   $50,000   Accounts payable   $208,000 Accounts receivable   91,000   Stockholders’ equity   238,700 Inventory   108,000       $446,700 Land   41,100         Buildings (net)   74,800         Equipment (net)   70,500         Trademarks   11,300             $446,700         The recorded amounts all approximate current values except for land (fair value of $62,600), inventory (fair value of $125,800), and trademarks (fair value of $17,600). 1). Prepare the July 1 entry for Flounder Corporation to record the purchase.  2). Prepare the December 31 entry for Flounder Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $4,640. (

Linden Corporations is negotiating for the purchase of Hill Company.  The following is an abbreviated balance sheet of Hill.  Hill Company Balance Sheet As of December 31, 2025    Assets                                                                                    Liabilities and Stockholders’ Equity                                                                Cash                                                                 $100,000          Accounts payable                        $150,000 Land                                                                   230,000          Notes payable (long-term)          250,000 Equipment, net                                               200,000          Common stock                               140,000                                                                                                    Trademark                                                          40,000          Retained earnings                           30,000…