FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivable with a face amount of $46,000 and equipment with a cost of $186,000 and accumulated depreciation of $101,000. The partners agree
that the equipment is to be valued at $83,000, that $3,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,200 is a reasonable allowance for the uncollectibility of the remaining accounts receivable.
Fallows contributes cash of $28,300 and merchandise inventory of $56,000. The partners agree that the merchandise inventory is to be valued at $60,500.
Journalize the entries in the partnership accounts for (a) Barton's investment and (b) Fallows's investment. If an amount box does not require an entry, leave it blank.
a.
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