Ethan Smith and Crystal Banks form a partnership on May 1, 202X. Smith contributes cash of $44,000.
Question:
Ethan Smith and Crystal Banks form a partnership on May 1, 202X. Smith contributes cash of $44,000. Banks contributes $29,000 cash and land with a historical cost of $19,000 and a current fair value of $28,500. A $32,000 note payable due to Banks is assumed by the new partnership. Please prepare the journal entries to record Smith’s and Banks’s investment in the partnership.
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May 1 Cash 1 Ethan Smith Capi...View the full answer
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780137504282
15th Edition
Authors: Jeffrey Slater, Mike Deschamps
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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