All assets and liabilities are transferred to the corporation.
3) The common stock is $10 par. Wilfred and Mike receive a total of 10,000 shares.
4) The partners share profits and losses in the ratio 7:3.
Based on the preceding information, the journal entry on W & M Corporation's books to record the assets and the issuance of the common stock will include a credit to Additional Paid-In Capital for:

Question

Quizplus · Accepted Answer

The par value of the stock is $10, so 10,000 shares have a par value of $100,000. If the total value of assets transferred is $131,000, the excess over par value ($131,000 - $100,000) is credited to Additional Paid-In Capital, which is $31,000.

All Assets and Liabilities Are Transferred to the Corporation