When Disney and Charles decided to incorporate their partnership,the trial balance was as follows:

The partnership's books will be closed,and new books will be used for D & C 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 $5 par.Disney and Charles 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

When Disney and Charles decided to incorporate their partnership,the trial balance was as follows:
  
The partnership's books will be closed,and new books will be used for D & C 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 $5 par.Disney and Charles 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.

Quizplus · Accepted Answer

The Answer of When Disney and Charles decided to incorporate their partnership,the trial balance was as follows:
  
The partnership's books will be closed,and new books will be used for D & C 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 $5 par.Disney and Charles 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.

When Disney and Charles Decided to Incorporate Their Partnership,the Trial