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Jane & Joan form a partnership by combining the assets of theirseparate businesses. Jane contributes accounts receivablewith a face amount of $50,000 & equipment with
Jane & Joan form a partnership by combining the assets of theirseparate businesses. Jane contributes accounts receivablewith a face amount of $50,000 & equipment with a cost of$190,000 and accumulated depreciation of $100,000. Thepartners agree that the equipment is to be priced at $85,000, that$3,500 of the accounts receivable are completely worthless and arenot to be accepted by the partnership, and that $1,500 is areasonable allowance for the uncollectibility of the remainingaccounts receivable. Joan contributes cash of $30,000 andmerchandise inventory of $59,500. The partners agree that themerchandise inventory is to be priced at $61,000. Journalizethe entries to record in the partnership accounts (a) Jane'sinvestment & (b) Joan's investment
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