Question

E12-2 K. Decker, S. Rosen, and E. Toso are forming a partnership Decker is transferring $50,000 of personal cash to the partnership. Rosen owns land worth $15.000 and a small building worth $80,000, which she transfers to the partnership. Toso transfers to the part- nership cash of $9.000. accounts receivable of $32,000, and equipment worth $39,000. The partnership expects to collect $29,000 of the accounts receivable Instructions (a) Prepare the journal entries to record each of the partners investiments. (b) What amount would be reported as total owners'equity immediately after the investments?

Answer 1

@ To Record for the indtial investments and assets brought by the partners into the partnership .k Decker Account Debit credit Cash $ 50,000 K. Decker, capital $50,000 • S. Rosen Building • $20,000 land $ 15,000 L. S. Rosen, capital $95,000 E. TOSO cash $ 9000 Account Receivables $ 32,000 Equipment $ 39,000 E•Toso, capital $80,000 The partnership expects to collect $29,000 of the accants receivable. $29,000 cash Accounts Receivable $29,000 06 owner's Equity in partnership k. Decker, capital $ 50,000 S. Rosen $ 95,000 $ 80,000 E. To so a