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
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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.

 

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