Partnership It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio. Forming a Partnership While forming the partnership, the contribution of assets by partners are debited to the partnership assets account; whereas the liabilities of the partnerships are credited to the partnership’s liabilities account, and the net amount of the investments of partners are credited to the partners’ individual capital account. To record: The journal entry of F’s investment to the partnership.

Question

Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship: Hannah Freeman Proprietorship Balance Sheet June 1, 20Y3 $ 65,000 Cash Accounts receivable $125,000 Less: Allowance for doubtful accounts 7,200 117,800 Land 215,000 $ 78,000 Equipment Less: Accumulated depreciation-equipment 41,000 37,000 Total assets $434,800 $ 24,800 Accounts payable Notes payable Hannah Freeman, capital 76,000 334,000 Total liabilities and owner's equity $434,800 Freeman obtained appraised values for the land and equipment as follows: Land $320,000 Equipment 34,800 An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $9,500. Journalize the partnership's entry for Freeman's investment.

Answer 1

Question

Chapter 12, Problem 12.2EX

To determine

Partnership

It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio.

Forming a Partnership

While forming the partnership, the contribution of assets by partners are debited to the partnership assets account; whereas the liabilities of the partnerships are credited to the partnership’s liabilities account, and the net amount of the investments of partners are credited to the partners’ individual capital account.

To record: The journal entry of F’s investment to the partnership.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship: Hannah Freeman Proprietorship Balance Sheet June 1, 20Y3 $ 65,000 Cash Accounts receivable $125,000 Less: Allowance for doubtful accounts 7,200 117,800 Land 215,000 $ 78,000 Equipment Less: Accumulated depreciation-equipment 41,000 37,000 Total assets $434,800 $ 24,800 Accounts payable Notes payable Hannah Freeman, capital 76,000 334,000 Total liabilities and owner's equity $434,800 Freeman obtained appraised values for the land and equipment as follows: Land $320,000 Equipment 34,800 An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $9,500. Journalize the partnership's entry for Freeman's investment.

Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship: Hannah Freeman Proprietorship Balance Sheet June 1, 20Y3 Cash $32,350 Accounts receivable $60,800 Less: Allowance for doubtful accounts 3,600 57,200 Land 146,000 Equipment $57,000 Less: Accumulated depreciation—equipment 34,900 22,100 Total assets $257,650 Accounts payable $18,100 Notes payable 53,250 Hannah Freeman, capital 186,300 Total liabilities and owner's equity $257,650 Freeman obtained appraised values for the land and equipment as follows: Land $203,000 Equipment 17,200 An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $5,300. Journalize the partnership's entry for Freeman’s investment. If an amount box does not require an entry, leave it blank.

Recording partner's original investmentHannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship freeman obtained appraised values for the land and equipment as follows:Land $320,000Equipment 34,800An analysis of the accounts receivable indicated that they allow ante for doubtful accounts should be increased to $9,500. Journalize the partnership's entry for Freeman’s investment