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Gentry, sole proprietor of a hardware business, decides to form a partnership with Noel. Gentry's accounts are as follows: Book Value Market Value Cash $25,000
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Gentry, sole proprietor of a hardware business, decides to form a partnership with Noel. Gentry's accounts are as follows:
Book Value Market Value Cash $25,000 $25,000 Accounts Receivable (net) 52,000 45,000 Inventory 112,000 125,000 Land 40,000 100,000 Building (net) 300,000 340,000 Accounts Payable 25,000 25,000 Mortgage Payable 145,000 145,000
Noel agrees to contribute $80,000 for a 20% interest.
Journalize the entries to record (a) Gentry's investment and (b) Noel's investment. If an amount box does not require an entry, leave it blank.
Gentry, sole proprietor of a hardware business, decides to form a partnership with Noel. Gentry's accounts are as follows:
| Book Value | Market Value | ||
| Cash | $25,000 | $25,000 | |
| Accounts Receivable (net) | 52,000 | 45,000 | |
| Inventory | 112,000 | 125,000 | |
| Land | 40,000 | 100,000 | |
| Building (net) | 300,000 | 340,000 | |
| Accounts Payable | 25,000 | 25,000 | |
| Mortgage Payable | 145,000 | 145,000 |
Noel agrees to contribute $80,000 for a 20% interest.
Journalize the entries to record (a) Gentry's investment and (b) Noel's investment. If an amount box does not require an entry, leave it blank.
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