Jesse and Tim form a partnership by combining the assets of their separate businesses Jesse contributes accounts receivable with a face amount of $45,000 and equipment with a cost of $183,000 and accumulated depreciation of $100,000 The partners agree that the equipment is to be valued at $68,500, that $3,100 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,600 is a reasonable allowance for the uncollectibility of the remaining accounts receivable Tim contributes cash of $20,000 and merchandise inventory of $45,500 The partners agree that the merchandise inventory is to be valued at $49,000 Required Journalize the entries to record in the partnership accounts (a) Jesses investment and (b) Tims investment Refer to the Chart of Accounts for exact wording of account titles Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Interest Receivable 115 Notes Receivable 116 Merchandise Inventory 117 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation Building 125 Equipment 126 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 Jesse, Capital 311 Jesse, Drawing 312 Tim, Capital 313 Tim, Drawing REVENUE 410 Sales 610 Interest Revenue EXPENSES 511 Cost of Merchandise Sold 521 Salary Expense 531 Advertising Expense 532 Utilities Expense 533 Repairs Expense 534 Supplies Expense 535 Rent Expense 536 Insurance Expense 541 Bad Debt Expense 542 Credit Card Expense 543 Cash Short and Over 551 Depreciation Expense Building 553 Depreciation Expense Equipment 591 Miscellaneous Expense 710 Interest Expense General Journal On December 31, journalize the entries to record in the partnership accounts (a) Jesses investment and (b) Tims investment Refer to the Chart of Accounts for exact wording of account titles

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Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $45,000 and

Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $45,000 and equipment with a cost of $183,000 and accumulated depreciation of $100,000. The partners agree that the equipment is to be valued at $68,500, that $3,100 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,600 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $20,000 and merchandise inventory of $45,500. The partners agree that the merchandise inventory is to be valued at $49,000.

Required:

Journalize the entries to record in the partnership accounts (a) Jesses investment and (b) Tims investment. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
111	Petty Cash
112	Accounts Receivable
113	Allowance for Doubtful Accounts
114	Interest Receivable
115	Notes Receivable
116	Merchandise Inventory
117	Supplies
118	Prepaid Insurance
120	Land
123	Building
124	Accumulated Depreciation-Building
125	Equipment
126	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	Jesse, Capital
311	Jesse, Drawing
312	Tim, Capital
313	Tim, Drawing

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
511	Cost of Merchandise Sold
521	Salary Expense
531	Advertising Expense
532	Utilities Expense
533	Repairs Expense
534	Supplies Expense
535	Rent Expense
536	Insurance Expense
541	Bad Debt Expense
542	Credit Card Expense
543	Cash Short and Over
551	Depreciation Expense-Building
553	Depreciation Expense-Equipment
591	Miscellaneous Expense
710	Interest Expense

General Journal

On December 31, journalize the entries to record in the partnership accounts (a) Jesses investment and (b) Tims investment. Refer to the Chart of Accounts for exact wording of account titles.