Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to combine their separate businesses which were operated as proprietorships to form M & B Auto Repair, a partnership. Information from their separate balance sheets is presented below: Marden Auto Repair Baker Auto Repair Cash $10,500 $14,800 Accounts receivable 12,900 11,100 Allowance for doubtful accounts 1,500 4,200 Accounts payable 5,600 5,600 Notes payable 4,500 Salaries and wages payable 1,000 1,700 Equipment 12,700 22,200 Accumulated depreciation-equipment 2,100 4,500 It is agreed that the expected realizable value of Marden's accounts receivable is $11,400 and Baker's receivables is $6,900. The fair value of Marden's equipment is $13,900 and the value of Baker's equipment is $20,200. It is further agreed that the new partnership will assume all liabilities of the proprietorships with the exception of the notes payable on Baker's balance sheet which he will pay himself. Prepare the journal entries necessary to record the formation of the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Accounts Receivable Equipment Allowance for Doubtful Accounts Salaries and Wages Payable Accounts Payable R. Marden, Capital (To record R. Marden's investment) Debit 10500 12900 13900 Credit 1500 1000 5600 24300 Cash Accounts Receivable Equipment Allowance for Doubtful Accounts Salaries and Wages Payable Accounts Payable T. Baker, Capital (To record Baker's investment) 14800 11100 20200 4200 1700 5600 18000 Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to combine their separate businesses which were operated as proprietorships to form M & B Auto Repair, a partnership. Information from their separate balance sheets is presented below: Marden Auto Repair Baker Auto Repair Cash $10,500 $14,800 Accounts receivable 12,900 11,100 Allowance for doubtful accounts 1,500 4,200 Accounts payable 5,600 5,600 Notes payable 4,500 Salaries and wages payable 1,000 1,700 Equipment 12,700 22,200 Accumulated depreciation-equipment 2,100 4,500 It is agreed that the expected realizable value of Marden's accounts receivable is $11,400 and Baker's receivables is $6,900. The fair value of Marden's equipment is $13,900 and the value of Baker's equipment is $20,200. It is further agreed that the new partnership will assume all liabilities of the proprietorships with the exception of the notes payable on Baker's balance sheet which he will pay himself. Prepare the journal entries necessary to record the formation of the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Accounts Receivable Equipment Allowance for Doubtful Accounts Salaries and Wages Payable Accounts Payable R. Marden, Capital (To record R. Marden's investment) Debit 10500 12900 13900 Credit 1500 1000 5600 24300 Cash Accounts Receivable Equipment Allowance for Doubtful Accounts Salaries and Wages Payable Accounts Payable T. Baker, Capital (To record Baker's investment) 14800 11100 20200 4200 1700 5600 18000
Expert Answer:
Related Book For
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
Posted Date:
Students also viewed these accounting questions
-
P7.6 (LO 2, 3) (Journalize Various Accounts Receivable Transactions) The statement of financial position of Stancia SA at December 31, 2021, includes the following (in thousands). Notes receivable...
-
Joe Mann and Sam Trane operate separate auto repair shops. On January 1, 2012, they decide to combine their separate businesses which were operated as proprietorships to form M & T Auto Repair, a...
-
Wendy Reichstein and Sonia Datta operate separate auto repair shops. On January 15, 2021, they decided to combine their businesses, which had been operated as proprietorships, to form Wendy &...
-
What are the Key Success factors in the Daycare industry? explain
-
Describe clearly what is meant by escalation of commitment and describe the possible causes.
-
If you buy a callable bond and interest rates decline, will the value of your bond rise by as much as it would have risen if the bond had not been callable? Explain.
-
Omar Corporation, which has begun investing in trading securities, engaged in the following transactions: Jan. 6 Purchased 7,000 shares of Quaker Oats stock, $30 per share. Feb. 15 Purchased 9,000...
-
The personnel department at LastCall Enterprises handles many administrative tasks for the two divisions that make up LastCall: LaidBack and StressedOut. LaidBack division manages the companys...
-
are coporations legal entities and recognized by state law
-
Using the provided financial data, calculate the earnings per share (EPS) and diluted EPS for Berkshire Hathaway Inc. for the year 2023. Data: net income $10,000,000, preferred dividends $500,000,...
-
The Watson Foundation, a private not-for-profit entity, starts 2024 with cash of $100,000; contributions receivable (net) of $200,000; investments of $300,000; and land, buildings, and equipment...
-
HW15: Angular momentum. A disk of radius R = 0.2 m and mass M = 0.15 kg is spinning at angular velocity w = 2.5 rad/s. 1. What is the moment of inertia Id of the disk? 2. What is the magnitude of the...
-
The current price of a BLX Inc. bond is $103.00. If the yield increased by 50 basis points (bp), the price would decline to $100.25 while if the yield decreased by 50 bp, the price would increase to...
-
Nomsa was appointed six months ago as a Secretary in the Department of Finance. During her onboarding meeting she was told she will be a minuting secretary to the Departmental Committee meeting that...
-
A student obtains a loan for $8,450. How much money does the student actually receive, assuming a loan fee of 1.09%? (Round your answer to the nearest cent.) 2. Angelica received a 12-year...
-
Accounting Double Entry. Can you do this for me. 9.7 Enter the following transactions in the ledger of A Baker and prepare a trial balance at 31 May, together with a calculation of the profit for the...
-
A sample statistic will not change from sample to sample. Determine whether the statement is true or false. If it is false, rewrite it as a true statement.
-
Graph 17 Use Kruskal's Algorithm to find a minimum spanning tree of the given graph. Graph it and calculate its weight. 9.3 a 1.5 13.3 5.2 8.7 Graph 17 2.0 50' 100 110 250 300 90 75 225 210 425 Graph...
-
Match the concepts of accrual accounting on the right with the assumptions or actions on the left: 1. Assumes expenses should be assigned to the accounting period in which they are used to produce...
-
Identify the graph(s) with six edges. Use the figure shown. b a b a e F F F F d Graph S e Graph T e Graph U e Graph V Graph W
Study smarter with the SolutionInn App