On July 1, 20--, Lisa Bush and Wally Dodge combined their two businesses to form a partnership
Question:
On July 1, 20--, Lisa Bush and Wally Dodge combined their two businesses to form a partnership under the firm name of Bush and Dodge. The balance sheets of the two sole proprietorships are shown below.
The balance sheets reflect fair market values except for the following:
(a) The fair market value of Bush's store equipment is $7,350.
(b) The fair market values of Dodge's office equipment and store equipment are $5,875 and $6,100, respectively.
REQUIRED
Prepare the opening entry for the formation of the Bush and Dodge partnership as of July 1, 20--, using fair market values. The difference between assets invested and liabilities assumed should be credited to each partner's capital account. Neither partner has knowledge of any uncollectible accountsreceivable.
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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