Problem #23 Incorporation of a Partnership The condensed statement of financial position of the partnership of Buenaflor and Gangoso as of Dec. 31, 2019 showed the following: Total Assets Total...

Prepare journal entries in the book of corporation

Extracted text: Problem #23 Incorporation of a Partnership The condensed statement of financial position of the partnership of Buenaflor and Gangoso as of Dec. 31, 2019 showed the following: Total Assets Total Liabilities Buenaflor, Capital Gangoso, Capital P200,000 40,000 80,000 80,000 On this date, the partnership was dissolved and its net assets transferred to a newly- formed corporation. The fair value of the assets was P24,000 more than the carrying value on the firm's books. Each of the partners was issued 10,000 shares of the corporation's P1 par ordinary share. Required: Prepare the journal entries in the books of the corporation.