Jay & Kay partnership's balance sheet at December 31, 2003, reported the following: Total assets 100,000 Total liabilities 20,000 Jay, capital Каy, сapital 40,000 40,000 On Jamuary 2, 2004, Jay and Kay dissolved their partnership and transferred all the assets and liabilities to a newly formed corporation. At the date of incorporation, the fair value of the net assets was P12,000 more than the carrying amount on the partnership's books. Jay and Kay were eachissued 5,000 shares of the corporation's P1 par value common stock. Immediately following incorporation, additional paid-in capital in excess of par (share premitum) should be credited for
Jay & Kay partnership's balance sheet at December 31, 2003, reported the following: Total assets 100,000 Total liabilities 20,000 Jay, capital Каy, сapital 40,000 40,000 On Jamuary 2, 2004, Jay and Kay dissolved their partnership and transferred all the assets and liabilities to a newly formed corporation. At the date of incorporation, the fair value of the net assets was P12,000 more than the carrying amount on the partnership's books. Jay and Kay were eachissued 5,000 shares of the corporation's P1 par value common stock. Immediately following incorporation, additional paid-in capital in excess of par (share premitum) should be credited for
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A. 68,000
B. 70,000
C. 82,000
D. 77,000
Transcribed Image Text:Jay & Kay partnership's balance sheet at December 31, 2003, reported the following:
Total assets
100,000
Total liabilities
20,000
Jay, capital
Кay, capital
40,000
40,000
On January 2, 2004, Jay and Kay dissolved their partnership and transferred all the assets and liabilities
to a newly formed corporation. At the date of incorporation, the fair value of the net assets was P12,000
more than the carrying amount on the partnership's books. Jay and Kay were each issued 5,000 shares of
the corporation's P1 par value common stock. Immediately following incorporation, additional paid-in
capital in excess of par (share premium) should be credited for
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