Problem 23

Incorporation of a Partnership

The condensed statement of financial position of the partnership of Buenaflor and Gangoso as of Dec. 31,2019 showed the following:

Total Assets 200,000

Total liabilities 40,000

Buenaflor,Capital 80,000

Gangoso,Capital 80,000

On this date, the partnership was dissolve and its net assets transferred to a newly-formed corporation. The fair value of assets was 24,000 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 journal entries in the books of the corporation.