Make entries on books of the partnership.
Make entries on books of the corporation.
A CORNER IN ONE OF THE SHOPS OF BROWNE & SHARPE MANUFACTURING CO., PROVIDENCE, R. I.
2. Hoadley and Stockton are partners and desire to incorporate a company with a capital of $10,000.00 to take over their business. It being necessary to have three incorporators they agree to give Hopper, an employee, 10 shares—$1,000.00—of the stock of the new company. The stock is to be divided equally between Hoadley and Stockton after giving Hopper $1,000.00. The balance sheet of the partnership is as follows:
| Assets | ||
| Cash | $960.00 | |
| Accounts receivable | 1,570.00 | |
| Merchandise | 720.00 | |
| ———— | ||
| Total | $3,250.00 | |
| Liabilities | ||
| Accounts payable | 460.00 | |
| Bills payable | 500.00 | |
| Hoadley | 1,145.00 | |
| Stockton | 1,145.00 | |
| ———— | ||
| Total | 3,250.00 | |
Make all necessary entries on the books of the partnership.
Make open entries on the books of the new company.
3. The National Manufacturing Co., has an authorized capital of $100,000.00 of which $60,000.00 is paid up and $40,000.00 unsubscribed. It is decided to permit employes to subscribe for $10,000.00 of the stock by paying 10 per cent in cash, all dividends declared to be applied to the payment of subscriptions.