Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $46,000 and equipment with a cost of $177,000 and accumulated depreciation of $102,000. The partners agree that the equipment is to be valued at $68,400, that $3,300 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,200 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $21,500 and merchandise inventory of $45,000. The partners agree that the merchandise inventory is to be valued at $48,500. Required:Journalize the entries to record in the partnership accounts (a) Jesse's investment and (b) Tim's investment. Refer to the Chart of Accounts for exact wording of account titles.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
How do fossils provide evidence of environmental changes that occurred in the past?
Answers (1)
How do modern theatrical performances differ from those in earlier time periods? What are the similarities?
Answers (1)
Goodmark Company produces two types of birthday cards: scented and regular. Expected product data for the coming year are given below. Overhead costs are identified by activity.
Answers (1)
Thirty-five percent of the students who enroll in a statistics course go to the statistics laboratory on a regular basis. Past data indicates that 40% of those students who use the lab on a regular basis make a grade of B or better.
Answers (1)
A customer sells short 100 shares of ABC at $35 and buys 1 ABC Jul 35 Call @ $3. The stock falls to $30 and the customer closes the option contract at $1 and buys the stock at the current market price. The customer has a:A. $200 lossB. $300 lossC.
Answers (1)
New Questions in Business
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (349,400 units) $ 4,372,000 Cost of goods sold 2,595,000 Gross profit
Answers (1)
What equipment should you use to reheat food? A. A stove B. A heat lamp C. A steam table D. A chafing dish
Answers (1)
A small multifamily property generates $50,000 in rental income, $10,000 in expenses, and $25,000 in debt service. The property appreciates about $25,000 each year. What is the cash flow on this property?
Answers (1)
Robot Corporation is liquidated, with Marty receiving property having an adjusted basis of $60,000 and an FMV of $90,000. The property is subject to a $80,000 mortgage, which Marty assumes. Marty's basis in the Robot stock surrendered is $50,000.
Answers (1)
Sales and commission are based on selling price, not the costs you have been provided. Labor: 13.8 hours at 18.75 per hour Overhead: 92% of labor Material Costs: $65.
Answers (1)