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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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