Foster Corporation established Kline Company as a wholly owned subsidiary. Foster reported the following balance sheet amounts immediately before and after it transferred assets and accounts payable to Kline Company in exchange for 4,000 shares of $12 par value common stock:

Required
a. Give the journal entry that Foster recorded when it transferred its assets and accounts payable to Kline.
b. Give the journal entry that Kline recorded upon receipt of the assets and accounts payable fromFoster.

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Amount Reported Before Transfer After Transfer S 40,000 65,000 30,000 5 25,000 Accounts Recevable 21,000 66,000 12,000 mentory Investment in Kline Company Land Depreciable Assets Accumilated Depreclation Total Assets 15,000 $180,000 75,000 $1 15,000 47,000 Accounts Payable Bonds Payable Common Stock Retained Earnings $ 40,000 60,000 75,000 Total Liabilities and Equities