Problem

Balance Sheet Data for Companies Establishing a PartnershipGood Corporation and Nevall Com...

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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