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 Buil ding (net) 300 , 000 340 , 000 Accounts Payable 25 , 000 25 , 000 Mortgage Payable 145 , 000 145 , 000 \begin{array}{lrr} & ext { Book Value } & ext { Market Value } \ ext { Cash } & \$ 25,000 & \$ 25,000 \ ext { Accounts Receivable (net) } & 52,000 & 45,000 \ ext { Inventory } & 112,000 & 125,000 \ ext { Land } & 40,000 & 100,000 \ ext { Buil ding (net) } & 300,000 & 340,000 \ ext { Accounts Payable } & 25,000 & 25,000 \ ext { Mortgage Payable } & 145,000 & 145,000\end{array} Cash Accounts Receivable (net) Inventory Land Buil ding (net) Accounts Payable Mortgage Payable Book Value $25 , 000 52 , 000 112 , 000 40 , 000 300 , 000 25 , 000 145 , 000 Market Value $25 , 000 45 , 000 125 , 000 100 , 000 340 , 000 25 , 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.

Question

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  Buil ding (net)  300 , 000 340 , 000  Accounts Payable  25 , 000 25 , 000  Mortgage Payable  145 , 000 145 , 000 \begin{array}{lrr}  &  	ext { Book Value }  &  	ext { Market Value } \	ext { Cash }  &  \$ 25,000  &  \$ 25,000 \	ext { Accounts Receivable (net) }  &  52,000  &  45,000 \	ext { Inventory }  &  112,000  &  125,000 \	ext { Land }  &  40,000  &  100,000 \	ext { Buil ding (net) }  &  300,000  &  340,000 \	ext { Accounts Payable }  &  25,000  &  25,000 \	ext { Mortgage Payable }  &  145,000  &  145,000\end{array}  Cash   Accounts Receivable (net)   Inventory   Land   Buil ding (net)   Accounts Payable   Mortgage Payable  ​  Book Value  $25 , 000 52 , 000 112 , 000 40 , 000 300 , 000 25 , 000 145 , 000 ​  Market Value  $25 , 000 45 , 000 125 , 000 100 , 000 340 , 000 25 , 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.

Amanda Rowen · Accepted Answer

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