Prepare a statement of partnership realization and liquidation 02) When Disney and Charles decided to incorporate their partnership, the trial balance was as follows: Credit Cash $ Debit 50,000 25,000 55,000 120,000 Accounts Receivable (net) Inventory Equipment (net) Accounts Payable Disney, Capital Charles, Capital Total $ 40,000 140,000 70,000 $250,000 $ 250,000 The partnership's books will be closed, and new books will be used for D&C Corporation. The following additional information is available: 1. The estimated fair values of the assets follow: Accounts Receivable Inventory Equipment $ 22,000 48,000 95,000 2. All assets and liabilities are transferred to the corporation. 3. The common stock is $5 par. Disney and Charles receive a total of 24,000 shares. 4. Disney and Charles share profits and losses in the ratio 6:4. Required: a. Prepare the entries on the partnership's books to record (1) the revaluation of assets, (2) the transfer of the assets to the D&C Corporation and the receipt of the common stock, and (3) the closing of the books. b. Prepare the entries on D & C Corporation's books to record the assets and the issuance of the common stock