A business owned by Cristiano Ronaldo was short of cash and Ronaldo therefore decided to form a Partnership with Lionel Messi, who was able to contribute cash to the new partnership. The assets contributed by Ronaldo appeared as follows in the balance sheet of her business: cash $600: account receivable, $34900, with an allowance for doubtful accounts of $960: inventory $45600: and store equipment, $21600. Ronaldo had recorded depreciation of $1800 during his use of the store equipment in his sole proprietorship. Ronaldo and Messi agreed that the allowance for Doubtful accounts was in adequate and should be $1800.They also agreed that a fair value for the inventory was its replacement cost of $54000 and that the fair value of the store equipment was $19000.You are required to open the partnership accounts by making a general journal entry to record the investment by Ronaldo?
Question # 01:
A business owned by Cristiano Ronaldo was short of cash and Ronaldo therefore decided to form a Partnership with Lionel Messi, who was able to contribute cash to the new partnership. The assets contributed by Ronaldo appeared as follows in the
Ronaldo and Messi agreed that the allowance for Doubtful accounts was in adequate and should be $1800.They also agreed that a fair value for the inventory was its replacement cost of $54000 and that the fair value of the store equipment was $19000.You are required to open the partnership accounts by making a general
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
