Michelle Hamilton and Bill Rossi decide to form a partnership. Hamilton invests $35,700 cash and accounts receivable of $30,300 less llowance for doubtful accounts of $2,500. Rossi contributes $23,000 cash and equipment having a $5,600 book value. It is agreed hat the allowance account should be $3,600 and the fair value of the equipment is $10,300. Prepare the necessary journal entry to record the formation of the partnership. (Credit account titles are automatically indented when the mount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Michelle Hamilton and Bill Rossi decide to form a partnership. Hamilton invests $35,700 cash and accounts receivable of $30,300 less llowance for doubtful accounts of $2,500. Rossi contributes $23,000 cash and equipment having a $5,600 book value. It is agreed hat the allowance account should be $3,600 and the fair value of the equipment is $10,300. Prepare the necessary journal entry to record the formation of the partnership. (Credit account titles are automatically indented when the mount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Michelle Hamilton and Bill Rossi decide to form a partnership. Hamilton invests $35,700 cash and accounts receivable of $30,300 less
allowance for doubtful accounts of $2,500. Rossi contributes $23,000 cash and equipment having a $5,600 book value. It is agreed
that the allowance account should be $3,600 and the fair value of the equipment is $10,300.
Prepare the necessary journal entry to record the formation of the partnership. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. List all debit entries before credit entries.)
Account Titles and Explanation
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Debit
Credit
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