Creation of PartnershipGlover Corporation entered into an agreement with Renfro Company to establish G&R Partnership. Glover agreed to transfer the following assets to G&R for 90 percent ownership, and Renfro agreed to transfer $50,000 cash to the partnership for 10 percent ownership.
| Cost | Book Value |
Cash | $ 10,000 | $ 10,000 |
Accounts Receivable | 19,000 | 19,000 |
Inventory | 35,000 | 35,000 |
Land | 16,000 | 16,000 |
Buildings | 260,000 | 200,000 |
Equipment | 210,000 | 170,000 |
Required
a. Give the journal entry that Glover recorded at the time of its transfer of assets to G&R.
b. Give the journal entry that Renfro recorded at the time of its transfer of cash to G&R.
c. Give the journal entry that G&R recorded upon the receipt of assets from Glover and Renfro.
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