Partners A & B wish to expand their flourishing business and agree… 1 answer below »

COMPANY START UP
Partners A & B wish to expand their flourishing business and agree to take on B & C as a means of obtaining additional capital.
All agree it is in their best interests to incorporate a company rather than expand the partnership. Each is to be issued with 3 shares each (12 in total)
A & B agree to provide all existing partnership assets as their contribution. Value $60000
B & C are to buy company shares at above par ($1) of $60000 each. ($20000 per share) However, B & C have no funds and are to be financed by A & B.
A)
You are required to prepare journal entries to: Record the assets belonging to A & B as assets of the newly formed company Record the contributions of B & C appropriately in the ledger Record the share issue

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