The Logan Company is purchasing the Nylon Sail Company. The Nylon Sail Company's Balance Sheet information on June 30, 2020 is as follows: Logan Company will pay $800,000 cash down, sign and issue a Note Payable to Nylon Sail Company in the amount of $350,000, 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 $145,000 Land $175,300 Bullding $515,800 Patent $82,300 Trademark $15,000 Required: 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 a 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
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