Question
Keke and Bebe form a partnership by combining the assets of their separate businesses. Keke contributes accounts receivable with a face amount of $162,000 and
Keke and Bebe form a partnership by combining the assets of their separate businesses. Keke contributes accounts receivable with a face amount of $162,000 and equipment with a cost of $321,000 and accumulated depreciation of $95,000. The partners agree that the equipment is to be priced at $277,000, that $1,425 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,280 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Bebe contributes cash of $128,780 and merchandise inventory of $92,290. The partners agree that the merchandise inventory is to be priced at $84,480.
Required:
Journalize the entries to record in the partnership accounts (a) Keke's investment and (b) Bebe's investment.
Journal:
Date | Description | Post Ref | Debit | Credit |
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