A Private Capital Company is being founded with a capital of 12,000 euros, which is covered by capital contributions from partners A, B, and 5bC. The participation percentages of partners A, B, and C are 45%, 15%, and 40%, respectively. Partner C, for their participation, also contributes a property valued at 13,000 euros. The capital will be deposited into an account maintained by the company at a designated bank. Required: Make the appropriate journal entries.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter14: Multinational Capital Budgeting
Section: Chapter Questions
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A Private Capital Company is being founded with a capital of 12,000 euros, which is covered by capital contributions from partners A, B, and 5bC. The participation percentages of partners A, B, and C are 45%, 15%, and 40%, respectively. Partner C, for their participation, also contributes a property valued at 13,000 euros. The capital will be deposited into an account maintained by the company at a designated bank. Required: Make the appropriate journal entries.

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