Prepare the journal entries in the books of the corporation with P 1 par ordinary share.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The condensed statement of financial position of the partnership of Buenaflor and Gangoso as of December 31, 2020 showed the following:

Total assets P 200, 000
Total liabilities 40, 000
Buenaflor, Capital 80, 000
Gangoso, Capital 80, 000

On this date, the partnership was dissolved and its net assets transferred to a newly formed corporation.
The fair value of the assets was P 24, 000 more than the carrying value on the firm’s books.

REQUIRED: Prepare the journal entries in the books of the corporation with P 1 par ordinary share.

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