Foster Corporation established Kline Company as a wholly owned subsidiary. Foster reported the following balance sheet amounts immediately before and after it transferred assets and accounts payable to Kline Company in exchange for 4,900 shares of $12 par value common stock:

        Amount Reported

Before Transfer

After Transfer

  Assets

  Cash

$

46,000

$

23,000

  Accounts Receivable

83,000

38,000

  Inventory

32,000

13,000

  Investment in Kline Company

111,000

  Land

23,000

20,000

  Depreciable Assets

$

195,000

$

108,000

  Accumulated Depreciation

93,000

102,000

46,000

62,000

  Total Assets

$

286,000

$

267,000

  Liabilities and Equities

  Accounts Payable

$

33,000

$

14,000

  Bonds Payable

77,000

77,000

  Common Stock

53,000

53,000

  Retained Earnings

123,000

123,000

  Total Liabilities and Equities

$

286,000

$

267,000

Required:

a.&b.

Prepare the journal entry that Foster recorded when it transferred the assets to Kline, and the entry that Kline recorded for the receipt of assets and issuance of common stock to Foster. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)