how can Bob create a Hedera account for Carole

Previously, Alice created an account for Bob.

Now Bob wants to create an account for Carole.

Here's what Bob needs to do:

In his hedera wallet:

1. choose menu ACCOUNTS > Default Account
2. copy the public key (tap the copy icon)
3. choose menu ACTIVITY > Create Account
4. paste the public key from step 2
5. enter an amount to open the account with, at least 2 hbar. Optionally enter a memo.
6. hit 'Pay'. The transaction will be sent to the network and a new account created within seconds.
7. A message should appear "Account created successfully" along with the new account ID. Make a note of the new account ID
8. choose menu ACCOUNTS > Default Account, and change the account  ID to the new one obtained in the previous step then hit Close
9. hit refresh to verify the balance of the new account
   You may also check the transaction at https://app.dragonglass.me/hedera/accounts/0.0.XXXXX where XXXXX is the account number (use either the sender or recipient account number, the transaction should show equally on both sides)
10. (optional) make a small payment to verify access to the account (eg to Alice who set you up with an account)
    
    The following steps should be done with a new wallet *, so either any device that does not yet have the wallet app, or uninstall the wallet from your device (make sure you have your recovery phrase stored safely)
11. menu SECURITY > Update key, then Accept
12. a new recovery phrase is shown, copy and store this safely and securely
13. enter the account number where asked, then hit 'Confirm'
14. the request is sent to hedera and a confirmation message is shown once completed

* 22 Oct 2019 it seems to be possible to do this without uninstalling your wallet, a (false) error message will be given but I found the update is completed successfully, so if you do this make sure you save the recovery phrase anyway. You can then use it to restore a wallet with that account number, eg give these details to Carole and she should then be able to restore that account to her new wallet, then follow these steps to change the recovery details.

How to handover a Hedera account from Alice to Bob

Alice has one step: give Bob the recovery phrase and associated account number

Bob's steps:

1. install hedera wallet on device, select "Recover wallet" and enter details provided by Alice
2. verify access to the account by sending a small amount of hbar, eg 0.1hbar to Alice
    check the transaction at https://app.dragonglass.me/hedera/accounts/0.0.XXXXX where XXXXX is the account number (use either the sender or recipient account number, the transaction should show equally on both sides)
3. select app menu SECURITY > Update Key, then Accept
4. a new recovery phrase is shown, copy and store this safely and securely
5. enter the account number where asked, then hit 'Confirm'
6. the request is sent to hedera and a confirmation message is shown once completed

This concludes the account handover. Alice no longer has access to the account, and Bob can recover it if needed using the recovery phrase from step 4. Note that anyone who steals the recovery phrase and account number effectively steals the account, so take precautions to protect this info, and ideally do not store these two items together.

Next step: Bob can now create an account for Carole, then Carole for Dave, Dave for Emily, Emily for Frank, Frank for Georgia, and so it goes on....