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Required A Required B Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No General Journal Credit A Event 1 Cash Inventory Land Buildings Equipment Accounts payable Common stock Additional paid-in capital < Required A Required B > Debit 25,000 78,000 93,000 × 258,000 × 124,000 61,000 217,000 300,000 × Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Sollon issued Pab 31,000 shares of $7 par value common stock. The following information is provided on the assets and accounts payable transferred: Cash Inventory Land Buildings Equipment Accounts Payable Required: Cost $ 25,000 Book Value $ 25,000 Fair Value $ 25,000 78,000 78,000 78,000 63,000 63,000 93,000 180,000 132,000 258,000 92,000 76,000 61,000 61,000 124,000 61,000 a. Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon b. Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Event General Journal A 1 Investment in Sollon Company common stock Accounts payable Cash Inventory Land Buildings Equipment Accounts payable × Debit 313,000 Credit 61,000 25,000 × 78,000 × 63,000 132,000 × 76,000 × 61,000 ×

Required A Required B Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No General Journal Credit A Event 1 Cash Inventory Land Buildings Equipment Accounts payable Common stock Additional paid-in capital < Required A Required B > Debit 25,000 78,000 93,000 × 258,000 × 124,000 61,000 217,000 300,000 × Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Sollon issued Pab 31,000 shares of $7 par value common stock. The following information is provided on the assets and accounts payable transferred: Cash Inventory Land Buildings Equipment Accounts Payable Required: Cost $ 25,000 Book Value $ 25,000 Fair Value $ 25,000 78,000 78,000 78,000 63,000 63,000 93,000 180,000 132,000 258,000 92,000 76,000 61,000 61,000 124,000 61,000 a. Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon b. Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Event General Journal A 1 Investment in Sollon Company common stock Accounts payable Cash Inventory Land Buildings Equipment Accounts payable × Debit 313,000 Credit 61,000 25,000 × 78,000 × 63,000 132,000 × 76,000 × 61,000 ×

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required A Required B Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No General Journal Credit A Event 1 Cash Inventory Land Buildings Equipment Accounts payable Common stock Additional paid-in capital < Required A Required B > Debit 25,000 78,000 93,000 × 258,000 × 124,000 61,000 217,000 300,000 ×
Transcribed Image Text:Required A Required B Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No General Journal Credit A Event 1 Cash Inventory Land Buildings Equipment Accounts payable Common stock Additional paid-in capital < Required A Required B > Debit 25,000 78,000 93,000 × 258,000 × 124,000 61,000 217,000 300,000 ×
Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Sollon issued Pab 31,000 shares of $7 par value common stock. The following information is provided on the assets and accounts payable transferred: Cash Inventory Land Buildings Equipment Accounts Payable Required: Cost $ 25,000 Book Value $ 25,000 Fair Value $ 25,000 78,000 78,000 78,000 63,000 63,000 93,000 180,000 132,000 258,000 92,000 76,000 61,000 61,000 124,000 61,000 a. Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon b. Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Event General Journal A 1 Investment in Sollon Company common stock Accounts payable Cash Inventory Land Buildings Equipment Accounts payable × Debit 313,000 Credit 61,000 25,000 × 78,000 × 63,000 132,000 × 76,000 × 61,000 ×
Transcribed Image Text:Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Sollon issued Pab 31,000 shares of $7 par value common stock. The following information is provided on the assets and accounts payable transferred: Cash Inventory Land Buildings Equipment Accounts Payable Required: Cost $ 25,000 Book Value $ 25,000 Fair Value $ 25,000 78,000 78,000 78,000 63,000 63,000 93,000 180,000 132,000 258,000 92,000 76,000 61,000 61,000 124,000 61,000 a. Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon b. Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Event General Journal A 1 Investment in Sollon Company common stock Accounts payable Cash Inventory Land Buildings Equipment Accounts payable × Debit 313,000 Credit 61,000 25,000 × 78,000 × 63,000 132,000 × 76,000 × 61,000 ×
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