Calculator Chart of Accounts General Journal Instructions Jesse and Tim form a p
ID: 2539473 • Letter: C
Question
Calculator Chart of Accounts General Journal Instructions Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $50,000 and equipment with a cost of $180,000 and accumulated depreciation of $100,000. The partners agree that the equpment is to be valued at $58.000, that $3,500 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,000 is a reasonable allowance for the uncollectbility of the remaining accounts receivable. Tim contributes cash of $21,000 and merchandise inventory of $44,500. The partners agree that the merchandise inventory is to be valued at $48,000 Required: Chart of Accounts for Journalize the entries to record in the partnership accounts (a) Jesse's investment and (b) Tim's investment Refer to the exact wording of account titles 06PMExplanation / Answer
Particular Amount (Dr) Amount (Cr) Equipment $ 58,000.00 Accounts Receivable $ 46,500.00 To Allowance of Doubtful Accounts $ 2,000.00 To Jesse's Capital A/c $ 102,500.00 (Being amt of Assets contributed to partnership by Jesse) Cash $ 21,000.00 Inventory $ 48,000.00 To Tim's Capital $ 69,000.00 (Being amount of Assets contributed to partnership by Tim's) 1) Note: Book Value of Equipment contributed by Jesse's=(Cost-Accumulated Depreciation)=($180000-$100000)=$80000 valued as $58000 so we take 58000. 2) $ 3500 of Accounts receivable are completely worthless so we deduct it from Accounts receivable=($50000-$3500) 3) Inventory contributed by Tim's is $ 44500 but it is valued at the time of contribution =$48000, so we considered that amount.
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