Question
Max Becker and Robyn Cook are currently competitors and agreed to form Becker and Cook Partnership on 1 May 2022. The fair value of their
Max Becker and Robyn Cook are currently competitors and agreed to form Becker and Cook Partnership on 1 May 2022. The fair value of their assets and liabilities are show in the table below:
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| Fair value ($) | |
| Account | Becker | Cook |
| Cash as bank | 70,000 | 20,000 |
| Accounts receivable |
| 20,000 |
| Inventory | 40,000 | 10,000 |
| Equipment (net) | 50,000 | 20,000 |
| Land |
| 60,000 |
| Building (net) |
| 50,000 |
| Mortgage |
| 15,000 |
Required: (Ignore GST)
- Prepare the journal entries (including narrations) to record each partners initial investment to the partnership, if the partners agreed their capital should be $170,000.
- Prepare the partnerships balance sheet as at 1 May 2022.
DO NOT LEAVE A BLANK ROW BETWEEN EACH ITEM. DO NOT USE COMMAS, SPACES OR THE $ SIGN.
a.
| Date | Account | Debit ($) | Credit ($) |
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b.
| Becker and Cook Partnership Balance Sheet as at 1 May 2022 | ||
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| $ | $ |
| Current Assets |
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| Total Assets |
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| Total Liabilities |
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| Net Assets |
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| Equity |
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