Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Lester Company transferred the following assets to a newly created subsidiary, Mumby Corporation, in exchange for 40,000 shares of its $3 par value stock:      Cost Book Value   Cash $ 40,000   $ 40,000     Accounts Receivable   75,000     68,000     Inventory   50,000     50,000     Land   35,000     35,000     Buildings   160,000     125,000     Equipment   240,000     180,000        Required: a&b

Lester Company transferred the following assets to a newly created subsidiary, Mumby Corporation, in exchange for 40,000 shares of its $3 par value stock:      Cost Book Value   Cash $ 40,000   $ 40,000     Accounts Receivable   75,000     68,000     Inventory   50,000     50,000     Land   35,000     35,000     Buildings   160,000     125,000     Equipment   240,000     180,000        Required: a&b

Accounting

Lester Company transferred the following assets to a newly created subsidiary, Mumby Corporation, in exchange for 40,000 shares of its $3 par value stock:

  

 

Cost

Book Value

  Cash

$

40,000

 

$

40,000

 

  Accounts Receivable

 

75,000

 

 

68,000

 

  Inventory

 

50,000

 

 

50,000

 

  Land

 

35,000

 

 

35,000

 

  Buildings

 

160,000

 

 

125,000

 

  Equipment

 

240,000

 

 

180,000

 


 

  

Required:

a&b.

Prepare the journal entry in which Lester recorded the transfer of assets to Mumby Corporation, and the entry in which Mumby recorded for the receipt of assets and issuance of common stock to Lester

Option 1

Low Cost Option
Download this past answer in few clicks

5.87 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE