Question
Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $25,200 cash, and Nichols contributes $17,000 cash and equipment having a book
Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $25,200 cash, and Nichols contributes $17,000 cash and equipment having a book value of $5,376. Prepare the entry to record Nicholss investment in the partnership, assuming the equipment has a fair value of $6,720. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Penner and Torres decide to merge their proprietorships into a partnership called Cullumber Company. The balance sheet of Torres Co. shows:
Accounts receivable | $33,000 | |||
Less: Allowance for doubtful accounts | 2,310 | $30,690 | ||
Equipment | 28,000 | |||
Less: Accumulated depreciationequip. | 9,800 | 18,200 |
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