Question
Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole
Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship:
Hannah Freeman Proprietorship |
Balance Sheet |
June 1, 20Y3 |
1 | Cash |
| $76,610.00 |
2 | Accounts receivable | $134,110.00 |
|
3 | Less: Allowance for doubtful accounts | 7,350.00 | 126,760.00 |
4 | Land |
| 204,370.00 |
5 | Equipment | $79,830.00 |
|
6 | Less: Accumulated depreciation-equipment | 42,510.00 | 37,320.00 |
7 | Total assets |
| $445,060.00 |
8 | Accounts payable |
| $25,180.00 |
9 | Notes payable |
| 80,500.00 |
10 | Hannah Freeman, capital |
| 339,380.00 |
11 | Total liabilities and owners equity |
| $445,060.00 |
Freeman obtained appraised values for the land and equipment as follows:
Land | $285,020 |
Equipment | 31,485 |
An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $9,470.
Required:
On December 31, journalize the partnerships entry for Freemans investment. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. |
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