Tim and Cook agree to combine their sole trading businesses and form a partnership. The fair...

 

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Tim and Cook agree to combine their sole trading businesses and form a partnership. The fair value and the carrying amount of assets and liabilities are as follows. Tim's Book Cook's Book Accounts Carrying amount Fair value Carrying amount Fair value Cash at bank 6,200 6,200 5,800 5,800 Accounts receivable 12,000 12,000 14,000 14,000 Equipment 45,000 30,000 52,000 28,000 Less Accumulated depreciation (10,000) (22,000) Accounts payable 7,000 7,000 8,000 8,000 Required Prepare separate general journal entries to record the initial investment of each partner on 20 June 20x3. Tim and Cook agree to combine their sole trading businesses and form a partnership. The fair value and the carrying amount of assets and liabilities are as follows. Tim's Book Cook's Book Accounts Carrying amount Fair value Carrying amount Fair value Cash at bank 6,200 6,200 5,800 5,800 Accounts receivable 12,000 12,000 14,000 14,000 Equipment 45,000 30,000 52,000 28,000 Less Accumulated depreciation (10,000) (22,000) Accounts payable 7,000 7,000 8,000 8,000 Required Prepare separate general journal entries to record the initial investment of each partner on 20 June 20x3.

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To record the initial investment of each partner in the ... View the full answer