Ask Question
6 November, 15:27

Austin Fisher contributed land, inventory, and $36,000 cash to a partnership. The land had a book value of $120,000 and a market value of $175,000. The inventory had a book value of $50,000 and a market value of $42,000. The partnership also assumed a $35,000 note payable owed by Fisher that was used originally to purchase the land. Provide the journal entry for Fisher

+1
Answers (1)
  1. 6 November, 16:12
    0
    Debit Credit

    Cash 36,000

    Land 175,000

    Inventory 42,000

    Accounts Payable 35,000

    Austin Fisher, Capital 218,000

    253,000 253,000

    Explanation:

    It is necessary before making the accounting entry, to determine which entry value will be given to the equity components.

    The land and inventory must be valued at their market value.

    It must be taken into account that there is a debt that affects the land and it must be canceled by the partnership. It will be registered on accounts payable.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Austin Fisher contributed land, inventory, and $36,000 cash to a partnership. The land had a book value of $120,000 and a market value of ...” 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