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of $45,000 and equipment with a cost of $191,000 and accur $84,000, that $3,700 of the accounts receivable are complet reasonable allowance for the uncollectibility of the remaining partners agree that the inventory is to be valued at $61,000. for (a) Bar

of $45,000 and equipment with a cost of $191,000 and accur $84,000, that $3,700 of the accounts receivable are complet reasonable allowance for the uncollectibility of the remaining partners agree that the inventory is to be valued at $61,000. for (a) Bar

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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Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivable with a face amount of $45,000 and equipment with a cost of $191,000 and accumulated depreciation of $105,000. The partners agree that the equipment is to be valued at $84,000, that $3,700 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,300 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Fallows contributes cash of $29,000 and inventory of $56,500. The partners agree that the inventory is to be valued at $61,000. Journalize the entries in the partnership accounts for (a) Barton's investment and (b) Fallows's investment. If an amount box does not require an entry, leave it blank. a. 1971 0000 2
Transcribed Image Text:Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivable with a face amount of $45,000 and equipment with a cost of $191,000 and accumulated depreciation of $105,000. The partners agree that the equipment is to be valued at $84,000, that $3,700 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,300 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Fallows contributes cash of $29,000 and inventory of $56,500. The partners agree that the inventory is to be valued at $61,000. Journalize the entries in the partnership accounts for (a) Barton's investment and (b) Fallows's investment. If an amount box does not require an entry, leave it blank. a. 1971 0000 2
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