partnership accounts by making a general journal entry to record the investment by Ronaldo?
partnership accounts by making a general journal entry to record the investment by Ronaldo?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![A business owned by Cristiano Ronaldo was short of cash and Ronaldo therefore decided to
form a Partnership with Lionel Messi, who was able to contribute cash to the new partnership.
The assets contributed by Ronaldo appeared as follows in the balance sheet of her business: cash
$600: account receivable, $34900, with an allowance for doubtful accounts of $960: inventory
$45600: and store equipment, $21600. Ronaldo had recorded depreciation of $1800 during his
use of the store equipment in his sole proprietorship.
Ronaldo and Messi agreed that the allowance for Doubtful accounts was inadequate and should
be $1800.They also agreed that a fair value for the inventory was its replacement cost of $54000
and that the fair value of the store equipment was $19000.You are required to open the
partnership accounts by making a general journal entry to record the investment by Ronaldo?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ffa842e-d816-4136-a5d0-c1f23a729a43%2F3a50ff95-2146-46a2-874e-4c1de2d9b17b%2F0o32idu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A business owned by Cristiano Ronaldo was short of cash and Ronaldo therefore decided to
form a Partnership with Lionel Messi, who was able to contribute cash to the new partnership.
The assets contributed by Ronaldo appeared as follows in the balance sheet of her business: cash
$600: account receivable, $34900, with an allowance for doubtful accounts of $960: inventory
$45600: and store equipment, $21600. Ronaldo had recorded depreciation of $1800 during his
use of the store equipment in his sole proprietorship.
Ronaldo and Messi agreed that the allowance for Doubtful accounts was inadequate and should
be $1800.They also agreed that a fair value for the inventory was its replacement cost of $54000
and that the fair value of the store equipment was $19000.You are required to open the
partnership accounts by making a general journal entry to record the investment by Ronaldo?
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