Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Recording Partner's Original Investment Kimberly Payne and Arionna Maples decide to form a partnership by combining the assets of their separate businesses. Payne contributes the

image text in transcribed
Recording Partner's Original Investment Kimberly Payne and Arionna Maples decide to form a partnership by combining the assets of their separate businesses. Payne contributes the following assets to the partnership: cash, $11,910; accounts receivable with a face amount of $125,060 and an allowance for doubtful accounts of $4,510; merchandise inventory with a cost of $93,040; and equipment with a cost of $155,680 and accumulated depredation of $101,190. The partners agree that $5,500 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $9,380 is a reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inwentory is to be recorded at the current market price of $87,460, and that the equipment is to be valued at $68,660 Journalize the partnership's entry to record Payne's investment. For a compound transaction, I an amount box does not require an entry, leave it blank. Cash Accounts Receivable Merchandise Inventory Equipment Allowance for Doubtful Accounts Kimberly Payne, Capital

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing Principles And Techniques

Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke

2nd Edition

0894133268, 978-0894133268

More Books

Students also viewed these Accounting questions

Question

=+What does this say for the future of the business case for CSR?

Answered: 1 week ago