Jason Taylor operates a store that sells computer software. Taylor has agreed to enter into a partnership with Omar Poole, effective January 1, 2016. The new firm will be called Global Computing. Taylor is to transfer all assets and liabilities of his firm to the partnership at the values agreed on. Poole will invest cash that is equal to 75 percent of Taylor's investment after revaluation. The accounts shown on Taylor's books and the agreed-on value of assets and liabilities are shown below.
Instructions
1. Prepare the general journal entries to record the following transactions in the books of the partnership on January 1, 2016:

a. Receipt of Taylor's investment of assets and liabilities.
b. Receipt of Poole's investment of cash.
2. Prepare a balance sheet for the partnership as of the beginning of its operations on January 1, 2016.
Analyze: Based on the balance sheet you have prepared, what percentage (to the nearest 1/10 of 1%) of total equity is owned by Jason Taylor?

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Balances Shown in Taylor's Records Value Agreed to by Partners Assets Transferred Cash Accounts Receivable Allowance for Doubtful Accounts 50,000 50,000 131,000 5,000 126,000 119,000 375,000 85,000 Merchandise Inventory Furniture and Equipment Accumulated Depreciation Total Assets Liobilities and Owner's Equity Transferred Accounts Payable 360,000 140,000 60,000 80,000 S616,000 70,000 $546,000 S629,000 70,000 Jason Taylor, Capita $559,000