$35,000 cash to a partnership. The land had a book value of $79,000 and a market value of $152,000. The inventory had a book value of $53,100 and a market value of $48,900. The partnership also assumed a $57,000 note payable owed by Lin that was used originally to purchase the land. Required: Provide the journal entry for Lin's contribution to the partnership. If an amount box does not require an entry, leave it blank. Cash 35.000 ✓ V Inventory Land✔ Notes Payable X Lin, Capital Feedback V ✓ 53,100 X 152.000 ✔ 48.900 X 79,000 X $7,000 Check My Work Record the assets at their current values, and record the liability at its current value. Lin's Capital account will be the balancing item for the entry.
$35,000 cash to a partnership. The land had a book value of $79,000 and a market value of $152,000. The inventory had a book value of $53,100 and a market value of $48,900. The partnership also assumed a $57,000 note payable owed by Lin that was used originally to purchase the land. Required: Provide the journal entry for Lin's contribution to the partnership. If an amount box does not require an entry, leave it blank. Cash 35.000 ✓ V Inventory Land✔ Notes Payable X Lin, Capital Feedback V ✓ 53,100 X 152.000 ✔ 48.900 X 79,000 X $7,000 Check My Work Record the assets at their current values, and record the liability at its current value. Lin's Capital account will be the balancing item for the entry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Step 1: Introduce Admission of Partner
ADMISSION OF PARTNER
Partners of a continuing business may, by common consent, decide to admit a new partner for additional capital, technical skill or managerial efficiency.
Adjustment required while new Partners are admit :—
Adjustment regarding Profit Sharing Ratio
Adjustment Regarding Goodwill
Adjustment regarding Capital Contribution of New partner and Capitals of existing partners.
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