The condensed statement of financial position of the partnership of Buenaflor and Gangoso as of Dec. 31, 2019 showed the following: Total Assets          P200,000 Total Liabilities       40,000 Buenaflor Capital   80,000 Gangoso, Capital   80,000      On this date, the partnership was dissolved and its net assets tranferred to a newly formed corporation. The fair value of the assets was P24,000 more than the carrying value on the firms books. Each of the partners was issued 10,000 shares of the corporation's P1 par ordinary share.            Required: Prepare the journal entries in the books of the corporation.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The condensed statement of financial position of the partnership of Buenaflor and Gangoso as of Dec. 31, 2019 showed the following:

Total Assets          P200,000

Total Liabilities       40,000

Buenaflor Capital   80,000

Gangoso, Capital   80,000     

On this date, the partnership was dissolved and its net assets tranferred to a newly formed corporation. The fair value of the assets was P24,000 more than the carrying value on the firms books. Each of the partners was issued 10,000 shares of the corporation's P1 par ordinary share.           

Required:

Prepare the journal entries in the books of the corporation.      

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