Vishnu When Alice and Betty decided to incorporate their partnership, its trial balance was as follows:CashAccounts Receivable (net)InventoryEquipment (net)Accounts PayableAlice, Capital (60%).Betty, Capital (40%)TotalDebit$ 8,10024,30036,30047,800Credit$ 17,60064,40034,500$116,500 $ 116,500$ 23,50033,10040,600The partnership's books will be closed, and new books will be used for A & B Corporation. The following additional information isavailable:1. The estimated fair values of the assets follow:Accounts Receivable.InventoryEquipment2. All assets and liabilities are transferred to the corporation.3. The common stock is $10 par. Alice and Betty receive a total of 7,400 shares.4. The partners' profit and loss-sharing ratio is shown in the trial balance.Required:a. Prepare the entries on the partnership's books to record (1) the revaluation of assets, (2) the transfer of the assets to A & BCorporation and the receipt of the common stock, and (3) the closing of the books.b. Prepare the entries on A & B Corporation's books to record the assets and the issuance of the common stock.

A journal entry is a record of a commercial transaction made in an organization's accounting system.…

When Alice and Betty decided to incorporate their partnership, its trial balance was as follows: Debit $ 8,100 24,300 36,300 47,800 Cash Accounts Receivable (net) Inventory Equipment (net) Accounts Payable Alice, Capital (60%) Betty, Capital (40%) Total Accounts Receivable Inventory Equipment Credit $ 17,600 64,400 34,500 $ 116,500 $ 116,500 The partnership's books will be closed, and new books will be used for A & B Corporation. The following additional information is available: 1. The estimated fair values of the assets follow: $ 23,500 33,100 40,600 2. All assets and liabilities are transferred to the corporation. 3. The common stock is $10 par. Alice and Betty receive a total of 7,400 shares. 4. The partners' profit and loss-sharing ratio is shown in the trial balance. Required: 6. Prepare the entries on the partnership's books to record (1) the revaluation of assets, (2) the transfer of the assets to A & B Corporation and the receipt of the common stock, and (3) the closing of the books. b. Prepare the entries on A & B Corporation's books to record the assets and the issuance of the common stock.