Calculator Print Item Recording Partner\'s Original Investment Kimberly Payne an

Question

Calculator Print Item Recording Partner's Original Investment Kimberly Payne and Arionna Maples decide to form a partnership by combining the assets of their separate businesses. Payne contributes the following assets to the partnership: cash, $17,790; accounts receivable with a face amount of $186,800 and an allowance for doubtful accounts of $6,740; merchandise inventory with a cost of $75,330; and equipment with a cost of $188,550 and accumulated depreciation of $122,560. The partners agree that $8,220 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $14,010 is a reasonable allowance for the uncollectibility of the remaining accounts that the merchandise inventory is to be recorded at the current market price of $70,810, and that the equipment is to be valued at $83,150. Journalize the partnership's entry to record Payne's investment. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash 17,790 178,580 v 70,810 V 65,990 X 6,740 X Accounts Receivable Merchandise Inventory Equipment Y Allowance for Doubtful Accounts Kimberly Payne, Capital 39,910 X Feedback Check My work 0 more Check My Work uses remaining Previous Next

Explanation / Answer

Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Cash      17,790.00 Accounts Receivable    178,580.00 Merchandise Inventory      70,810.00 Equipment      83,150.00 Allowance for Doubtful Accounts      14,010.00 Kimberly Payne, Capital    336,320.00 (record the Paynee's Capial introduced)

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