Balance Sheet Data for Companies Establishing a Partnership
Good Corporation and Nevall Company formed G&W Partnership in which Good received 75 percent ownership and Nevall received 25 percent ownership. The following assets were transferred by Good and Nevall:
| Good Corporation | Nevall Company | ||
Cost | Book Value | Cost | Book Value | |
Cash | $ 21,000 | $21,000 | $ 3,000 | $ 3,000 |
Inventory | 4,000 | 4,000 | 25,000 | 25,000 |
Land | 15,000 | 15,000 |
|
|
Buildings | 100,000 | 70,000 |
|
|
Equipment | 60,000 | 40,000 | 36,000 | 22,000 |
Required
a. Give thejournal entry that Good recorded for its transfer of assets to G&W Partnership.
b. Give thejournal entry that Nevall recorded for its transfer of assets to G&W Partnership.
c. Give thejournal entry that G&W recorded for its receipt of assets from Good and Nevall.
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