Jack Tyler operates a store that sells computer software. Tyler has agreed to enter into a partnership with Oliver Preston, effective January 1, 2019. The new firm will be called Global Computing. Tyler is to transfer all assets and liabilities of his firm to the partnership at the values agreed on. Preston will invest cash that is equal to 75 percent of Tyler€™s investment after revaluation. The accounts shown on Tyler€™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, 2019:
a. Receipt of Tyler€™s investment of assets and liabilities.
b. Receipt of Preston€™s investment of cash.
2. Prepare a balance sheet for the partnership as of the beginning of its operations on January 1, 2019.
Analyze: Based on the balance sheet you have prepared, what percentage (to the nearest 1/10 of 1%) of total equity is owned by Jack Tyler?

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Balances Value Shown In Agreed to by Partners Tyler's Records Assets Transferred $ 100,000 $100,000 Cash $65,500 Accounts Recelvable Allowance for Doubtful Accounts 2,500 63,000 56,000 Merchandise Inventory 187,500 180,000 Furniture and Equipment 70,000 50,000 Accumulated Depreclation 30,000 40,000 Total Assets $383,000 $393,500 Llabilittes and Owner's Equity Transferred Accounts Payable 35,000 35,000 Jack Tyler, Capital $348,000 $358,500