Question

Instructions Jesse and Tim forma partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $15000 and equipment with a cost of $183,000 and accumulated depreciation of S100,000. The partners agree that the equipment is to be valued at $68,500, that $3,100 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,600 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $20,000 and merchandise inventory of 545,500. The partners agree that the merchandise inventory is to be valued at $19.000 Required: Joumalize the entries to record in the partnership accounts (a) Jesse's investment and (b) Tim's investment. Refer to the Chart of Accounts for exact wording of account titles -

Answer 1

Answer-Jesse's Investment:-

DATE	DESCRIPTION	POST REF.	DEBIT	CREDIT
	Accounts Receivable ($45,000-$3,100)		$41,900
	Equipment (Agreed price)		$68,500
	Allowance for doubtful debts			$1,600
	Jesse's Capital (Balancing Figure)			$108,800

Tim's Investment:-

DATE	DESCRIPTION	POST REF.	DEBIT	CREDIT
	Cash		$20,000
	Inventory (At agreed price)		$49,000
	Tim Capital			$69,000