Ethan Smith and Crystal Banks form a partnership on May 1, 201X. Smith contributes cash of $40,000.
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Ethan Smith and Crystal Banks form a partnership on May 1, 201X. Smith contributes cash of $40,000. Banks contributes $28,000 cash and land costing $18,100 with a current fair value of $29,500. A $30,000 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.
PartnershipA 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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Related Book For
College Accounting A Practical Approach
ISBN: 9780134729312
14th Edition
Authors: Jeffrey Slater, Mike Deschamps
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