QUESTIONS Cest. Question 1 (50 points). Flower Corporation decided to establish Sparrow Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Sparrow issued 28,000 shares of $6 par value common stock. The following information is provided on the assets and liabilities transferred: Book Value Cash $30,000 $30,000 Accounts Receivable 90,000 70,000 Equipment 70,000 45,000 Building 210,000 120,000 Land 50,000 50,000 Accounts Payable 60,000 60,000 Salaries Payable 15,000 15,000 Required: a. Give the journal entry that Flower recorded for the transfer of assets and liabilities to Sparrow (25 points). b. Give the journal entry that Sparrow recorded for the receipt of assets and liabilities from Flower (25 points)