ecording Partner's Original Investment Cimberly Payne and Arionna Maples decide to form a partnership by combining the assets of their separate businesses. Payne contributes the following assets to the partnership: cash, $11,680; accounts receivable with a face amount of $122,640 and an allowance for doubtful accounts of $4,430; merchandise inventory with a cost of $97,310; and equipment with a cost of $185,970 and accumulated depreciation of $120,880. The partners agree that $5,400 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $9,200 is a reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inventory is to be recorded at the current market price of $91,470, and that the equipment is to be valued at $82,010. Journalize the partnership's entry to record Payne's investment. For a compound transaction, if an amount box does not require an entry, leave it blank.

ecording Partner's Original Investment Cimberly Payne and Arionna Maples decide to form a partnership by combining the assets of their separate businesses. Payne contributes the following assets to the partnership: cash, $11,680; accounts receivable with a face amount of $122,640 and an allowance for doubtful accounts of $4,430; merchandise inventory with a cost of $97,310; and equipment with a cost of $185,970 and accumulated depreciation of $120,880. The partners agree that $5,400 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $9,200 is a reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inventory is to be recorded at the current market price of $91,470, and that the equipment is to be valued at $82,010. Journalize the partnership's entry to record Payne's investment. For a compound transaction, if an amount box does not require an entry, leave it blank.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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