Phoster Corporation established Skine Company as a wholly owned subsidiary. Phoster reported the following balance sheet amounts immediately before and after it transferred assets and accounts payable to Skine Company in exchange for 4,000 shares of $12 par value common stock:

Required

a. Give the journal entry that Phoster recorded when it transferred its assets and accounts payable to Skine.

b. Give the journal entry that Skine recorded upon receipt of the assets and accounts payable from Phoster

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Cash Accounts Receivable Inventory Investment in Skine Company Land Depreciable Assets Accumulated Depreciation Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equities Before Transfer $180,000 75,000 Amount Reported $ 40,000 65,000 30,000 15,000 105,000 $255,000 $ 40,000 80,000 60,000 75,000 $255,000 After Transfer $115,000 47,000 $ 25,000 41,000 21,000 66,000 12,000 68,000 $233,000 $18,000 80,000 60,000 75,000 $233,000