When Disney and Charles decided to incorporate their partnership, the trial balance was as follows:

	debit	credit
cash	50,000
accounts receivable, net	25000
inventory	55,000
equipment, net	120,000
accounts payable		40,000
disney, capital		140,000
charles, capital		70,000
total	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	22,000
inventory	48,000
equipment	95,000

2. All assets and liabilities are transferred to the corporation. 3. The common stock is $5 par. Alice and Betty 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.