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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 $ 20,000/ $ 20,000 Accounts Receivable

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 $ 20,000/ $ 20,000

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 75,000 / 75,000

*Noel agrees to contribute $70,000 for a 20% interest. Journalize the entries to record (a) Gentry’s investment and (b) Noel’s investment.

Aug 17 2021 View more View Less

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