When Alice and Betty decided to incorporate their partnership, its trial balance was as follows:

	Debit	Credit
Cash	$ 8,500
Accounts Receivable (net)	23,700
Inventory	37,300
Equipment (net)	48,700
Accounts Payable		$ 20,300
Alice, Capital (60%)		63,200
Betty, Capital (40%)		34,700
Total	$ 118,200	$ 118,200

The partnerships 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:

Accounts Receivable	$ 22,900
Inventory	34,100
Equipment	41,500

1. All assets and liabilities are transferred to the corporation.
2. The common stock is $10 par. Alice and Betty receive a total of 7,100 shares.
3. The partners profit and losssharing ratio is shown in the trial balance.

Required:

1. Prepare the entries on the partnerships 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.
2. Prepare the entries on A & B Corporations books to record the assets and the issuance of the common stock.