FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Cap 12
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Recording Partner's Original Investment
Vanessa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate businesses. Kaiser contributes the following assets to the
partnership: cash, $18,920; accounts receivable with a face amount of $198,660 and an allowance for doubtful accounts of $7,170; inventory with a cost of $99,540; and
equipment with a cost of $139,330 and accumulated depreciation of $90,560.
The partners agree that $8,740 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $14,900 is a reasonable allowance for
the uncollectibility of the remaining accounts, that the inventory is to be recorded at the current market price of $93,570, and that the equipment is to be valued at $61,450.
Journalize the partnership's entry to record Kaiser's investment. If an amount box does not require an entry, leave it blank.
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Transcribed Image Text:Cap 12 eBook Show Me How Recording Partner's Original Investment Vanessa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate businesses. Kaiser contributes the following assets to the partnership: cash, $18,920; accounts receivable with a face amount of $198,660 and an allowance for doubtful accounts of $7,170; inventory with a cost of $99,540; and equipment with a cost of $139,330 and accumulated depreciation of $90,560. The partners agree that $8,740 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $14,900 is a reasonable allowance for the uncollectibility of the remaining accounts, that the inventory is to be recorded at the current market price of $93,570, and that the equipment is to be valued at $61,450. Journalize the partnership's entry to record Kaiser's investment. If an amount box does not require an entry, leave it blank.
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