Susan Casulla, Margie Landicho and Christine Supapo decided to incorporate their business and invited Irene Beltran and Eleanor Eno to join with them. The partnership shall transfer all assets and liabilities to the corporation. Irene Beltran and Eleanor Eno will purchase 250 each of the corporation’s ordinary share. The corporation is authorized to issue 5,000 shares at P50.00 par value per share. The post-closing trial balance after adjustments in preparation for incorporation follows: Yummy Cakes and Pastries Post-closing Trial Balance September 30, 20A Debit Credit Cash 40,000 Merchandise Inventory 70,000 Furniture and Equipment 100,000 Accumulated Depreciation 20,000 Accounts Payable 40,000 Casulla, Capital 50,000 Landicho, Capital 60,000 Supapo, Capital 40,000 210,000 210,000 Required: Prepare journal entries necessary in both the Partnership and Corporation books. Use Journal Entry Method.
Susan Casulla, Margie Landicho and Christine Supapo decided to incorporate their business and invited Irene Beltran and Eleanor Eno to join with them. The
Yummy Cakes and Pastries
Post-closing Trial Balance
September 30, 20A
Debit Credit
Cash 40,000
Merchandise Inventory 70,000
Furniture and Equipment 100,000
Accounts Payable 40,000
Casulla, Capital 50,000
Landicho, Capital 60,000
Supapo, Capital 40,000
210,000 210,000
Required: Prepare journal entries necessary in both the Partnership and Corporation books. Use
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