Question

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 4,000 shares of $12 par value common stock:


Required
a. Give the journal entry that Foster recorded when it transferred its assets and accounts payable to Kline.
b. Give the journal entry that Kline recorded upon receipt of the assets and accounts payable fromFoster.


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  • CreatedMay 23, 2014
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