Pagle Corporation established a subsidiary to enter into a new line of business considered to be substantially more risky than Pagle's current business. Pagle transferred the following assets and accounts payable to Sand Corporation in exchange for 5,000 shares of $10 par value stock of Sand: Cash Accounts Receivable Inventory Land Buildings and Equipment Accounts Payable Cost $ 30,000 Required B 45,000 60,000 20,000 300,000 10,000 Book Value $ 30,000 40,000 60,000 20,000 260,000 10,000 Required: a. Prepare the journal entry that Pagle recorded for the transfer of assets and accounts payable to Sand. b. Prepare the journal entry that Sand recorded for receipt of the assets and accounts payable from Pagle. Complete this question by entering your answers in the tabs below. Required A Prepare the journal entry that Sand recorded for receipt of the assets and accounts payable from Pagle.. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Pagle Corporation established a subsidiary to enter into a new line of business considered to be substantially more risky than Pagle's current business. Pagle transferred the following assets and accounts payable to Sand Corporation in exchange for 5,000 shares of $10 par value stock of Sand: Cash Accounts Receivable Inventory Land Buildings and Equipment Accounts Payable Cost $ 30,000 Required B 45,000 60,000 20,000 300,000 10,000 Book Value $ 30,000 40,000 60,000 20,000 260,000 10,000 Required: a. Prepare the journal entry that Pagle recorded for the transfer of assets and accounts payable to Sand. b. Prepare the journal entry that Sand recorded for receipt of the assets and accounts payable from Pagle. Complete this question by entering your answers in the tabs below. Required A Prepare the journal entry that Sand recorded for receipt of the assets and accounts payable from Pagle.. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

could you answer part B please?
Pagle Corporation established a subsidiary to enter into a new line of business considered to be substantially more risky than Pagle's
current business. Pagle transferred the following assets and accounts payable to Sand Corporation in exchange for 5,000 shares of
$10 par value stock of Sand:
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Accounts Payable
Cost
$ 30,000
45,000
60,000
20,000
300,000
10,000
Required B
Book Value
$ 30,000
40,000
60,000
20,000
260,000
10,000
Required:
a. Prepare the journal entry that Pagle recorded for the transfer of assets and accounts payable to Sand.
b. Prepare the journal entry that Sand recorded for receipt of the assets and accounts payable from Pagle.
Complete this question by entering your answers in the tabs below.
Required A
Prepare the journal entry that Sand recorded for receipt of the assets and accounts payable from Pagle.
Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.

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