The business assets of Cee and Dee appear below: Cee and Dee agreed to form a partnership by contributing their respective assets and equities with the following adjustments: a. Accounts receivable of $20,000 in Cee’s books and $35,000 in Dee’s books are uncollectible. b. Inventories of $5,500 and $6,700 are worthless in Cee’s and Dee’s respective books. c. Other assets of $2,000 and $3,600 in Cee’s and Dee’s respective
The business assets of Cee and Dee appear below:
Cee and Dee agreed to form a
a.
b. Inventories of $5,500 and $6,700 are worthless in Cee’s and Dee’s respective books.
c. Other assets of $2,000 and $3,600 in Cee’s and Dee’s respective books are to be written off.
1. What are the capital accounts of the partners after the adjustments?
Cee Dee Cee Dee
A. 614,476 683,052 C. 640,876 683,052
B. 615,942 717,894 D. 640,876 712,345
2. What amount is the total assets that the partnership have after the formation?
A. 2,237,918 B. 2,337,918 C. 2,265,118 D. 2,365,218
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