Recording Partner's Original Investment

Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship:

Hannah Freeman Proprietorship

Balance Sheet

June $1,20$Y$3$

Line Item Description Amount Amount

Cash $$59,750$

Accounts receivable $$112,300$

Allowance for doubtful accounts $(6,600)$

Subtotal $105,700$

Land $269,000$

Equipment $$105,000$

Accumulated depreciation$$equipment $(64,500)$

Subtotal $40,500$

Total assets $$474,950$

Accounts payable $$33,500$

Notes payable $97,250$

Hannah Freeman, capital $344,200$

Total liabilities and owner's equity $$474,950$

Freeman obtained appraised values for the land and equipment as follows:

Line Item Description Amount

Land $$374,000$

Equipment $31,600$

An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $$9,600.$

Journalize the partnership's entry for Freeman$$s investment. If an amount box does not require an entry, leave it blank.

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