Glover 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
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.