b. Prepare the journal entry that Sand recorded for receipt of the assets and accounts payable from Pagle. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the receipt of assets and accounts payable from Pagle. Note: Enter debits before credits. Event General Journal Debit Credit a. Prepare the journal entry that Pagle recorded for the transfer of assets and accounts payable to Sand. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet General Journal Debit Credit No Event AL 1 Investment in Sand Corporation common stock Accumulated depreciation Allowance for uncollectible accounts receivable 400,000 40,000 5,000 10,000 Accounts payable Cash Accounts receivable Inventory 30,000 45,000 60,000 20,000 300,000 Land Buildings and equipment Pagle Corporation established a subsidiary to enter into a new line of business considered to be substantially more risky than Pagle's current business. Pagle transferred the following assets and accounts payable to Sand Corporation in exchange for 5,000 shares of $10 par value stock of Sand: Cash Accounts Receivable Inventory Land Buildings & Equipment Accounts Payable Cost $ 30,000 45,000 60,000 20,000 300,000 10,000 Book Value $ 30,000 40,000 60,000 20,000 260,000 10,000