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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
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
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.

 

AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education