Ted Coverdale and Jim Kulak set up a new limited liability company on May 16, 2020. Ted contributes a warehouse and land worth a combined $1,098,000. Market value of the warehouse is $264,000. Jim contributes $893,000 in cash. Write the journal entry to record the contributions to the LLC.

Ted Coverdale and Jim Kulak set up a new limited liability company on May 16, 2020. Ted contributes a warehouse and land worth a combined $1,098,000. Market value of the warehouse is $264,000. Jim contributes $893,000 in cash. Write the journal entry to record the contributions to the LLC.

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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Ted Coverdale and Jim Kulak set up a new limited liability company on May
16, 2020. Ted contributes a warehouse and land worth a combined
$1,098,000. Market value of the warehouse is $264,000. Jim contributes
$893,000 in cash. Write the journal entry to record the contributions to the
LLC.
Do not enter dollar signs or commas in the input boxes.
Enter the debit accounts in alphabetical order, followed by the credit
accounts in alphabetical order.
Date
Account Title and Explanation
Debit
Credit
May 16
To record investment by partners

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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