Question

Check my work 1 1 16.66 points Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring some of its existing assets and abilities to the new entity. In exchange. Solon issued Pab 31000 shares of 56 par value common stock. The following information is provided on the assets and accounts payable transferred Cost Book Value Fair value Cash ) $ 44,000 $4,000 $ 40,000 Inventory 82,000 2.000 32,000 72,00 102,000 Buildings 174,000 135,000 253,000 Equipment 98,00 77,000 121.00 Accounts Payable 64.000 64,000,00 Required: a. Prepare the journal entry that Pabrecorded for the transfer of assets and accounts payable to Sellon no entry is required for a transaction event, select "No journal entry required in the first accountfield Pre Journal entry worksheet A Record that of payable to Solo

Answer 1

Event	General Journal	Debit	Credit
1	Investment in Sollon Company common stock	346,000
	Accumulated Depreciation-Buildings	39,000
	Accumulated Depreciation-Equipment	21,000
	Accounts payable	64,000
	Cash		44,000
	Inventory		82,000
	Land		72,000
	Building		174,000
	Equipment		98,000
2	Cash	44,000
	Inventory	82,000
	Land	72,000
	Building	174,000
	Equipment	98,000
	Accounts payable		64,000
	Accumulated Depreciation-Buildings		39,000
	Accumulated Depreciation-Equipment		21,000
	Common stock		186,000
	Additional paid in capital		160,000