Terrell Owens operates a small shop that sells fishing equipment. His postclosing trial balance on December 31, 2019, is shown below. Owens plans to enter into a partnership with Cathy Turner, effective January 1, 2020. Profits and losses will be shared equally. Owens is to transfer all assets and liabilities of his store to the partnership after revaluation as agreed. Turner will invest cash equal to Owenss investment after revaluation. The agreed values are Accounts Receivable (net), $13,200 Merchandise Inventory, $48,600 and Furniture and Equipment, $11,000. The partnership will operate as Owens and Turner Anglers Outpost.

Owens Tackle Center
Postclosing Trial Balance
December 31, 2019
Account Name	Debit		Credit
Cash	3,450
Accounts Receivable	14,450
Allowance for Doubtful Accounts			2,800
Merchandise Inventory	43,700
Furniture and Equipment	27,800
Accumulated Depreciation			21,700
Accounts Payable			2,700
Capital			62,200
Totals	89,400		89,400

1. In general journal form, prepare the entries to record:

1. The receipt of Owenss investment of assets and liabilities by the partnership.
2. The receipt of Turners investment of cash.

2. Prepare a balance sheet for Owens and Turner Anglers Outpost just after the investments.

Analyze: By what net amount were the net assets of Owens Tackle Center adjusted before they were transferred to the partnership?

General Journal Balance Sheet Analyze In general journal form, prepare the entries to record the receipt of Owens's investment of assets and liabilities by the partnership and the receipt of Turner's investment of cash. View transaction list Journal entry worksheet