Woo dworth's Antiques Balance Sheet June 30, 20- Assets Llabilties Cash $ 7,100 Motes payable $2,500 $4,500 Accounts payable Accounts recetvable 8400 Less allowanceforbaddebts 620 3,880 Total lablitles $10,900 Merchandse nventory 21 430 Store equpmant $8.200 Owner's Equity Less acaumulateddeprecak ken 1,300 6,900 Susan Woodworth, capital 28,410 Total asets $39,310 Total labikles and owTer's equity $39,310 Holy's Uninshed Fưrnture Balance Sheet June 30, 20-- Assets Labilitles Cash $ 4,520 Motes payable $8,000 Accounts recelvatle $3,75 Accounts payatie 6,300 Less alowance for bad debts 475 2,800 Total labilbes $14,300 Nerchandbe inventory 28,190 Supples ofke equipnent Less accumalated depreciation 960 $7 A00 1,800 5,600 Stor equipment Less accumilated depreciation $7,700 Owner's Equity 1,500 6,200 Bartara Holly, captal 33,970 Totalassets $48,70 Total labiiies and owner's equity $48,270
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
PARTNERSHIP OPENING ENTRIES On July 1, 20--, Susan Woodworth and Barbara Holly combined their two businesses to form a partnership under the firm name of Woodworth and Holly. The
The balance sheets reflect fair market values except for the following:
(a) The fair market value of Woodworth’s store equipment is $7,500.
(b) The fair market values of Holly’s office equipment and store equipment are $6,100 and $6,800, respectively.
Required
Prepare the opening entry for the formation of the Woodworth and Holly partnership as of July 1, 20--, using fair market values. The difference between assets invested and liabilities assumed should be credited to each partner’s capital account. Neither partner has knowledge of any uncollectible
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