Steffi Derr and Leigh Finger form a partnership by combining assets of their separate businesses. Derr contributes the following: cash, $1,000; supplies that cost $2,400; inventory that cost $3,500; and machinery that cost $9,900 along with its accumulated depreciation of $5,000. The partners agree that $2,000 is a good estimate of supplies, that inventory has a market value of $3,000, and that machinery is worth $4,000. Prepare the partnership's journal entry to record Derr's investment.

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Business

Xzavier Hess

11 August, 00:08

Steffi Derr and Leigh Finger form a partnership by combining assets of their separate businesses. Derr contributes the following: cash, $1,000; supplies that cost $2,400; inventory that cost $3,500; and machinery that cost $9,900 along with its accumulated depreciation of $5,000. The partners agree that $2,000 is a good estimate of supplies, that inventory has a market value of $3,000, and that machinery is worth $4,000. Prepare the partnership's journal entry to record Derr's investment.

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Ivan · Answer 1

An investment is by definition a capital that you submit to obtain profit (it depends on type type of parnership and and what type of capital is " the machinery" considerred to be, the period of time that got to that depreciation and how the $2400 difference between Derr's statements and bills and the actual value of the investments (evaluated by the partner?!) by the begining of the financial reporting date