Moss and Barber organize a partnership on January 1. Moss's initial net investment is $103,000, consisting of cash ($33,000), equipment ($84,000), and a note payable reflecting a bank loan for the new business ($14,000). Barber's initial investment is cash of $44,000. Prepare journal entries to record (1) Moss’s investment and (2) Barber’s investment.

Moss and Barber organize a partnership on January 1. Moss's initial net investment is $103,000, consisting of cash ($33,000), equipment ($84,000), and a note payable reflecting a bank loan for the new business ($14,000). Barber's initial investment is cash of $44,000. Prepare journal entries to record (1) Moss’s investment and (2) Barber’s investment.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 3PB

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