Solution Library

Journal Entries Preparation From Data Given In Balance Sheet

Question

Fred Graf, owner of Graf Interiors, is negotiating for the purchase of Terrell Galleries. The balance sheet of Terrell is given in an abbreviated form below.

TERRELL GALLERIES Balance Sheet as of December 31, 2012

Assets

Liabilities and Stockholders' Equity

Cash

Land

Buildings (net)

Equipment (net)

Copyrights (net)

Total assets

$100,000

   70,000

200,000

175,000

   30,000

$575,000

Accounts payable

Notes payable (long term)

Total liabilities

Common stock $200,000

Retained earnings 25,000

Total liabilities and stockholders' equity

$50,000

300,000

350,000

225,000

 

$575,000

Graf and Terrell agree that:
1. Land is undervalued by $50,000.
2. Equipment is overvalued by $5,000.
Terrell agrees to sell the gallery to Graf for $380,000.

Instructions

Prepare the entry to record the purchase of Terrell Galleries on Graf's books.

Summary

The question belongs to Accounting and it is about preparing journal entries based on the information given in the question which includes a balance sheet and few transactions.

Total Word Count 86

Download Full Solution

Comments

  • HWA
    Rasha

    this is a very good website

  • HWA
    maani

    I have 50 questions for the same test your page is showing only 28

  • HWA
    joeanne

    hi can you please help or guide me to answer my assignments. thanks

  • HWA
    joeanne

    hi can anyone help or guide me to my assignments. thanks

  • HWA
    Monik


  • HWA
    Cristina

    This solution is perfect ...thanks

  • HWA
    Janete

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA
    Sandeep

    Perfect bank of solution. 

  • HWA
    Oxana

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA
    Giuseppe

    works fine.