On May 1, 2013, The Johnston Restaurant group purchased the Red Tuna restaurant chain’ assets for $930,000 and agreed to assume a mortgage note owed by the Red Tuna to the First Bank of Baltimore in the amount of 32,000. The fair market value of Red Tuna’s assets on the date of purchase was as follows:
| Accounts Receivable | $84,800 |
| Merchandise Inventory | $64,900 |
| Land | $127,275 |
| Buildings | $272,000 |
| Equipment | $94,700 |
| Supplies | $10,090 |
| Patents | $133,000 |
Journalize the transaction on Johnston Group’s books involving the purchase of The Red Tuna chain.
| Date | Description | Debit | Credit |
|---|---|---|---|
| May 1, 2013 | |||
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