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. 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

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. 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.

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. 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.

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