Evan Surridge and Nicholas Tahir have each decided to close their proprietorships and form the ST Partnership on March 1, 20Y2. Surridge contributed equipment and $40,000 cash to the partnership. The equipment originally cost $68,000 with $37,000 of accumulated depreciation associated with the equipment but the partners agreed to value it at $5,000 below its book value. The partnership also assumed $12,000 owed by Surridge on account. Tahir contributed accounts receivable that were recorded on Tahir's proprietorship's books for $29,000 with $4,000 of Allowance for Doubtful Account associated with it. Surridge and Tahir mutually agreed that $5,000 of the receivables are worthless and the accounts receivable reserve should be increased by $1,000. Tahir also contributed inventory with a book value of $33,000 on Tahir's proprietorship's books but has a current market value of $39,000 due to scarcity in the market. Required: Prepare the journal entries, INCLUDING journal entry descriptions, to record to formation of the ST Partnership. You MUST show detailed calculations to support the amounts.

Evan Surridge and Nicholas Tahir have each decided to close their proprietorships and form the ST Partnership on March 1, 20Y2. Surridge contributed equipment and $40,000 cash to the partnership. The equipment originally cost $68,000 with $37,000 of accumulated depreciation associated with the equipment but the partners agreed to value it at $5,000 below its book value. The partnership also assumed $12,000 owed by Surridge on account. Tahir contributed accounts receivable that were recorded on Tahir's proprietorship's books for $29,000 with $4,000 of Allowance for Doubtful Account associated with it. Surridge and Tahir mutually agreed that $5,000 of the receivables are worthless and the accounts receivable reserve should be increased by $1,000. Tahir also contributed inventory with a book value of $33,000 on Tahir's proprietorship's books but has a current market value of $39,000 due to scarcity in the market. Required: Prepare the journal entries, INCLUDING journal entry descriptions, to record to formation of the ST Partnership. You MUST show detailed calculations to support the amounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
In your own words explain the agency theory and give atleast2 personal experience.
please help with the question that is attached as a picture. thanks
Write A little introduction on home depot.
Help me to decide what should I put in proposed price(subscription) of a time management app for student and explain. Thank you.
Define "BOOKKEEPING". what are your initial ideas or thoughts when you hear the word bookkeeping?
Title 1. Complete a search of online resources for grieving individuals. Which ones might you find helpful Description 1. Complete a search of online resources for grieving individuals. Which ones might you find helpful in your work with clients? Which ones might be helpful for your clients? 2. What do you think should be the minimum level of education, training, and experience for individuals who assist bereaved individuals?
In a thoughtful and well-written response, answer the following: If you were thinking about writing a Letter of Last Instruction, what are some specific provisions you might put into the document?
How do you find UBS Accounting software? What are the users comment of this accounting software (like/dislike/criticism)?
Please do not give solution in image format ?.
Name three services that your school (ex. School of Liberal Arts, School of Business, Schoolof Education, etc.) can help you with. Busineas liberal Arts Lendershin and
Q1: Write an e-mail to technical support team of your college to retrieve your login credentials. In order to make your e- mail effective mention all the important details and reasons to prioritize your response