Ben Franklin and John Hancock decide to form a partnership. Franklin invests $35,000 cash and accounts receivable of $25,000 less allowance for doubtful accounts of $2,000. Hancock contributes $23,000 cash and equipment having a $5,500 book value. It is agreed that the allowance account should be $3,000 and the fair value of the equipment is $10,000. Prepare the necessary journal entry to record the formation of the partnership.
Ben Franklin and John Hancock decide to form a partnership. Franklin invests $35,000 cash and accounts receivable of $25,000 less allowance for doubtful accounts of $2,000. Hancock contributes $23,000 cash and equipment having a $5,500 book value. It is agreed that the allowance account should be $3,000 and the fair value of the equipment is $10,000. Prepare the necessary journal entry to record the formation of the partnership.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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I am coming up with the wrong values, I believe because I am getting tripped up with verbiage. Please help with a descriptive understanding. Thanks
Ben Franklin and John Hancock decide to form a partnership. Franklin invests $35,000 cash and
Prepare the necessary
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