Moss and Barber organize a partnership on January 1. Mosss initial net investment is $75,000, consisting of

Question:

Moss and Barber organize a partnership on January 1. Moss’s initial net investment is $75,000, consisting of cash($17,500), equipment ($82,500), and a note payable reflecting a bank loan for the new business ($25,000). Barber’s initial investment is cash of $31,250. Prepare journal entries to record (1) Moss’s investment and (2) Barber’s investment.

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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