Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $50,000 and equipment with a cost of $177,000 and accumulated depreciation of $102,000. The partners agree that the equipment is to be valued at $67,800, that $3,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,200 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $21,500 and merchandise inventory of $45,000. The partners agree that the merchandise inventory is to be valued at $48,500. Journalize the entries to record in the partnership accounts (a) Jesse's investment and (b) Tim's investment. If an amount box does not require an entry, leave it blank. accounts receivable/allowance for doubtful accounts/cash/jesse,capital/jesse, drawing/equipment/tim, capital/tim,drawing/merchandise inventory (a) (b)
Jesse and Tim form a
accounts receivable/allowance for doubtful accounts/cash/jesse,capital/jesse, drawing/equipment/tim, capital/tim,drawing/merchandise inventory
| (a) | |||
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