K. Meissner, S. Cohen, and E. Hughes are forming a partnership. Meissner is tran
ID: 2346554 • Letter: K
Question
K. Meissner, S. Cohen, and E. Hughes are forming a partnership. Meissner is transferring $50,000 of personal cash to the partnership. Cohen owns land worth $15,000 and a small building worth $80,000, which she transfers to the partnership. Hughes transfers to the partnership cash of $9,000, accounts receivable of $32,000 and equipment worth $19,000. The partnership expects to collect $29,000 of the accounts receivable.Prepare the journal entries to record each of the partners' investments. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
What amount would be reported as total owners' equity immediately after the investments?
Explanation / Answer
Debit Cash $50,000 Credit Owners Equity - Meissner $50,000 Debit Fixed Assets Land $15,000 Debit Fixed Assets Building $80,000 Credit Owners Equity Cohen $95,000 Debit Cash $9,000 Debit Accounts Receivable $32,000 Debit Fixed Assets Equipment $19,000 Credit Allowance for Bad Debts $3,000 Credit Owners Equity Hughes $57,000 (b) What amount would be reported as total owner's' equity immediately after the investments? Owners Equity - Meissner $50,000 Owners Equity Cohen $95,000 Owners Equity Hughes $57,000 Total Owners Equity $202,000
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