Ed Hobbs and Carrie Lewis form a partnership on May 1, 201X. Hobbs contributes $39,000. Lewis contributes

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Ed Hobbs and Carrie Lewis form a partnership on May 1, 201X. Hobbs contributes $39,000. Lewis contributes $30,000 cash and land costing $18,500 with a current fair value of $30,500. A $32,000 note payable due to Lewis is assumed by the new partnership. Please prepare the journal entries to record Hobbs’s and Lewis’s investment in the partnership.

Partnership
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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College Accounting A Practical Approach

ISBN: 9780134729312

14th Edition

Authors: Jeffrey Slater, Mike Deschamps

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