Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Holly Renfro contributed a patent, accounts receivable, and $23,120 cash to a partnership. The patent had a book value of $8,410. However, the technology covered

Holly Renfro contributed a patent, accounts receivable, and $23,120 cash to a partnership. The patent had a book value of $8,410. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised at $86,860. The accounts receivable control account was $35,810, with an allowance for doubtful accounts of $1,980. The partnership also assumed a $10,930 account payable owed to a Renfros supplier.

CHART OF ACCOUNTS
Holly Renfro
General Ledger
ASSETS
110 Cash
111 Petty Cash
112 Accounts Receivable
113 Allowance for Doubtful Accounts
114 Interest Receivable
115 Notes Receivable
116 Inventory
117 Office Supplies
118 Store Supplies
119 Prepaid Insurance
120 Land
123 Equipment
124 Accumulated Depreciation-Equipment
129 Asset Revaluations
133 Patent
LIABILITIES
210 Accounts Payable
211 Salaries Payable
213 Sales Tax Payable
214 Interest Payable
215 Notes Payable
EQUITY
310 Holly Renfro, Capital
311 Holly Renfro, Drawing
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Merchandise Sold
520 Salaries Expense
521 Advertising Expense
522 Depreciation Expense-Equipment
523 Delivery Expense
524 Repairs Expense
529 Selling Expenses
531 Rent Expense
533 Insurance Expense
534 Office Supplies Expense
535 Store Supplies Expense
536 Credit Card Expense
537 Cash Short and Over
538 Bad Debt Expense
539 Miscellaneous Expense
710 Interest Expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Financial Accounting

Authors: Anne Marie Ward, Andrew Thomas

7th edition

77138449, 978-0077132682, 77132688, 978-0077138448

More Books

Students also viewed these Accounting questions

Question

e. What are the programs research and clinical focus areas?

Answered: 1 week ago