Kimberly Payne and Arionna Maples decide to form apartnershipby combining the assets of their separate businesses. Payne contributes the following assets to the partnership: cash, $25,230; accounts receivable with a face amount of $150,960 and an allowance for doubtful accounts of $3,970; merchandise inventory with a cost of $89,120; and equipment with a cost of $138,820 and accumulated depreciation of $41,460.

On December 1, journalize the partnership's entry to record Payne's investment. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Payne and Arionna Maples

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 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 Kimberly Payne, Capital

311 Kimberly Payne, Drawing

312 Arionna Maples, Capital

313 Arionna Maples, 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