Ann, Dea, and Mirna contribute the following assets to begin partnership operati

Question

Ann, Dea, and Mirna contribute the following assets to begin partnership operations:

                                                                            Ann Dea Mirna

                        Cash                                        $150,000         $225,000         $175,000

                        Inventory                                    57,000                                     89,000

                        Plant Assets                                                    350,000         100,000

                        Accounts Payable                        14,000                                     40,000

                        Notes Payable                                                 160,000

Record the journal entry to establish the assets and owners’ equity of the partnership.

Explanation / Answer

ANN DEA MIRNA TOTAL CASH 150000 225000 175000 550000 INVENTORY 57000 89000 146000 PLANT ASSETS 0 350000 100000 450000 LESS ACCOUNTS PAYABLE 14000 40000 54000 LESS NOTES PAYABLE 0 160000 160000 NET AMOUNT 193000 415000 324000 932000 DR CR CASH 550000 INVENTORY 146000 PLANT ASSETS 450000 ACCOUNTS PAYABLE 54000 NOTES PAYABLE 160000 ANN CAPITAL ACCOUNT 193000 DEA CAPITAL ACCOUNT 415000 MIRNA CAPITAL ACCOUNT 324000

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