All assets and liabilities are transferred to the corporation.
3. The common stock is $5 par. Alice and Betty receive a total of 24,000 shares.
4. Disney and Charles share profits and losses in the ratio 6:4.
Required:
a. Prepare the entries on the partnership's books to record (1) the revaluation of assets, (2) the transfer of the assets to the D & C Corporation and the receipt of the common stock, and (3) the closing of the books.
b. Prepare the entries on D & C Corporation's books to record the assets and the issuance of the common stock.

Question

Quizplus · Accepted Answer

The Answer of All assets and liabilities are transferred to the corporation.
3. The common stock is $5 par. Alice and Betty receive a total of 24,000 shares.
4. Disney and Charles share profits and losses in the ratio 6:4.
Required:
a. Prepare the entries on the partnership's books to record (1) the revaluation of assets, (2) the transfer of the assets to the D & C Corporation and the receipt of the common stock, and (3) the closing of the books.
b. Prepare the entries on D & C Corporation's books to record the assets and the issuance of the common stock.

All Assets and Liabilities Are Transferred to the Corporation