Krantz Company and Dull Corporation decided to form a partnership. Krantz agreed to transfer the following assets and accounts payable to K&D Partnership in exchange for 60 percent ownership:

Dull agreed to contribute cash of $200,000 to K&D Partnership.
Required
a. Give the journal entries that K&D recorded for its receipt of assets and accounts payable from Krantz and Dull.
b. Give the journal entries that Krantz and Dull recorded for their transfer of assets and accounts payable to K&D Partnership.

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Cost Book Value $ 10,000 30,000 70,000 200,000 120,000 50,000 $ 10,000 30,000 70,000 150,000 90,000 50,000 Cash Inventory Land Buildings Equipment Accounts Payable