Jesse and Tim form a partnership by combining the assets of their separate and e

Question

Jesse and Tim form a partnership by combining the assets of their separate and equipment with a cost of $180,000 and accumulated depreciation of $104,000. The partners agree that the equipment is to be valued at $68,400, that $3,600 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,700 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $22,000 and merchandise inventory of $45,500. The partners agree that the merchandise inventory is to be valued at $49,000. esse contributes accounts receivable with a face amount of $46,000 Jounalize the entries to record in the partnership accounts (a) Jesse's investment and (b) Tim's investment. If an amount box does not require an entry, leave Previous Next 6 10 PM My Tech (888)

Explanation / Answer

a Accounts Receivable 42400 =46000-3600 Equipment 68400        Allowance for Doubtful Accounts 1700        Jesse, capital 109100 b Cash 22000 Merchandise Inventory 49000        Tim, capital 71000

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