When Alice and Betty decided to incorporate their partnership, its trial balance was as follows:...
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When Alice and Betty decided to incorporate their partnership, its trial balance was as follows: Cash Accounts Receivable (net) Inventory Equipment (net) Accounts Payable Alice, Capital (60%) Betty, Capital (40%) Total Debit $ 8,600 24,100 36,400 47,800 Accounts Receivable Inventory Equipment $ 18,500 62,900 35,500 $ 116,900 $ 116,900 The partnership's books will be closed, and new books will be used for A & B Corporation. The following additional information is available: 1. The estimated fair values of the assets follow: Credit $ 23,300 33,200 40,600 2. All assets and liabilities are transferred to the corporation. 3. The common stock is $10 par. Alice and Betty receive a total of 7,500 shares. 4. The partners' profit and loss-sharing ratio is shown in the trial balance. Required: a. Prepare the entries on the partnership's books to record (1) the revaluation of assets, (2) the transfer of the assets to A & B Corporation and the receipt of the common stock, and (3) the closing of the books. b. Prepare the entries on A & B Corporation's books to record the assets and the issuance of the common stock.
When Alice and Betty decided to incorporate their partnership, its trial balance was as follows: The partnership's books will be closed, and new books will be used for A\& B Corporation. The following additional information is available: 1. The estimated fair values of the assets follow: 2. All assets and liabilities are transferred to the corporation. 3. The common stock is $10 par. Alice and Betty receive a total of 7,500 shares. 4. The partners' profit and loss-sharing ratio is shown in the trial balance. Required: 0. Prepare the entries on the partnership's books to record (1) the revaluation of assets. (2) the transfer of the assets to A&B Corporation and the receipt of the common stock, and (3) the closing of the books. b. Prepare the entries on A\& B Corporation's books to record the assets and the issuance of the common stock
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