Question 3 Abmad, Sami, and Barhoom formed a partnership named ASB House improvement Center on 1/1/2017. They contributed the following to the new company: Net Book value ($) Fair market value/ Agreed upon value (S) Ahmed's contribution: Cash Land Sami's contribution: 40,000 40,000 80,000 50,000 22,000 32,000 3,000 Cash Equipment Supplies Barhoom's contribution: Cash 22,000 28,000 2,600 Truck Accounts receivable Allowance for doubtful accounts 12,000 20,000 6,500 600 12,000 15,000 6,500 800 Required: Prepare the journal entry for the formation of the partnership. You can prepare separate entries or one entry. Account title
Question 3 Abmad, Sami, and Barhoom formed a partnership named ASB House improvement Center on 1/1/2017. They contributed the following to the new company: Net Book value ($) Fair market value/ Agreed upon value (S) Ahmed's contribution: Cash Land Sami's contribution: 40,000 40,000 80,000 50,000 22,000 32,000 3,000 Cash Equipment Supplies Barhoom's contribution: Cash 22,000 28,000 2,600 Truck Accounts receivable Allowance for doubtful accounts 12,000 20,000 6,500 600 12,000 15,000 6,500 800 Required: Prepare the journal entry for the formation of the partnership. You can prepare separate entries or one entry. Account title
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Question 3
Ahmad, Sami, and Barhoom formed a partnership named ASB House improvement Center on
1/1/2017. They contributed the following to the new company:
Net Book value ($)
Fair
market
value/
Agreed upon value (S)
Ahmed's contribution:
Cash
40,000
50,000
40,000
80,000
Land
Sami's contribution:
22,000
32,000
3,000
Cash
Equipment
Supplies
Barhoom's contribution:
22,000
28,000
2,600
12,000
20,000
6,500
600
Cash
12,000
15,000
6,500
800
Truck
Accounts receivable
Allowance for doubtful accounts
Required: Prepare the journal entry for the formation of the partnership. You can prepare
separate entries or one entry.
Account title
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F985ffd13-3075-4c91-a962-08dd5394d2ae%2F9082fe6c-d340-4c9d-8539-b603a0f237d0%2Fmiapxlw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 3
Ahmad, Sami, and Barhoom formed a partnership named ASB House improvement Center on
1/1/2017. They contributed the following to the new company:
Net Book value ($)
Fair
market
value/
Agreed upon value (S)
Ahmed's contribution:
Cash
40,000
50,000
40,000
80,000
Land
Sami's contribution:
22,000
32,000
3,000
Cash
Equipment
Supplies
Barhoom's contribution:
22,000
28,000
2,600
12,000
20,000
6,500
600
Cash
12,000
15,000
6,500
800
Truck
Accounts receivable
Allowance for doubtful accounts
Required: Prepare the journal entry for the formation of the partnership. You can prepare
separate entries or one entry.
Account title
Debit
Credit
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