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Mo Miller and Molly Moore operate separate hobby shops. On April 8, 2024, they decide to combine their businesses. which had been operated as proprietorships, to form Mo & Molly Partnership. Information from their separate balance sheets is presented below: Cash Accounts receivable Allowance for doubtful accounts Accounts payable Equipment Accumulated depreciation-equipment Mo's Models $7.200 1,350 (a) 270 1.125 1.800 720 Molly's Crafts $4,500 675 90 Date Account Titles and Explanation 450 900 It is agreed that the expected realizable value of Mo's accounts receivable is $900 and Molly's receivables is $450. The fair market value of Mo's equipment is $810 and Molly's equipment is $450. It is further agreed that the new partnership will assume all liabilities of the proprietorships 360 Prepare the journal entries necessary to record the formation of the partnership. (Credit account titles are automatically indented when the amount entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit

Mo Miller and Molly Moore operate separate hobby shops. On April 8, 2024, they decide to combine their businesses. which had been operated as proprietorships, to form Mo & Molly Partnership. Information from their separate balance sheets is presented below: Cash Accounts receivable Allowance for doubtful accounts Accounts payable Equipment Accumulated depreciation-equipment Mo's Models $7.200 1,350 (a) 270 1.125 1.800 720 Molly's Crafts $4,500 675 90 Date Account Titles and Explanation 450 900 It is agreed that the expected realizable value of Mo's accounts receivable is $900 and Molly's receivables is $450. The fair market value of Mo's equipment is $810 and Molly's equipment is $450. It is further agreed that the new partnership will assume all liabilities of the proprietorships 360 Prepare the journal entries necessary to record the formation of the partnership. (Credit account titles are automatically indented when the amount entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit

FINANCIAL ACCOUNTING
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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Mo Miller and Molly Moore operate separate hobby shops. On April 8, 2024, they decide to combine their businesses. which had been operated as proprietorships, to form Mo & Molly Partnership. Information from their separate balance sheets is presented below: Cash Accounts receivable. Allowance for doubtful accounts Accounts payable Equipment Accumulated depreciation-equipment (a) Mo's Models $7.200 1,350 270 1.125 Date Account Titles and Explanation 2024 Apt. 8 Apr. 8 1,800 720 It is agreed that the expected realizable value of Mo's accounts receivable is $900 and Molly's receivables is $450. The fair market value of Mo's equipment is $810 and Molly's equipment is $450. It is further agreed that the new partnership will assume all liabilities of the proprietorships (To record Mo's Models) Molly's Crafts $4,500 675 90 450 Prepare the journal entries necessary 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. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) 900 360 Debit Credit
Transcribed Image Text:Mo Miller and Molly Moore operate separate hobby shops. On April 8, 2024, they decide to combine their businesses. which had been operated as proprietorships, to form Mo & Molly Partnership. Information from their separate balance sheets is presented below: Cash Accounts receivable. Allowance for doubtful accounts Accounts payable Equipment Accumulated depreciation-equipment (a) Mo's Models $7.200 1,350 270 1.125 Date Account Titles and Explanation 2024 Apt. 8 Apr. 8 1,800 720 It is agreed that the expected realizable value of Mo's accounts receivable is $900 and Molly's receivables is $450. The fair market value of Mo's equipment is $810 and Molly's equipment is $450. It is further agreed that the new partnership will assume all liabilities of the proprietorships (To record Mo's Models) Molly's Crafts $4,500 675 90 450 Prepare the journal entries necessary 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. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) 900 360 Debit Credit
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