Question

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, $16,510; accounts receivable with a face amount of $173,360 and an allowance for doubtful accounts of $6,260; merchandise inventory with a cost of $76,930; and equipment with a cost of $142,650 and accumulated depreciation of $92,720.

The partners agree that $7,630 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $13,000 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 $72,310, and that the equipment is to be valued at $62,910.

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.

Partner's Drigial Invetment omberly Payme and Aronna Maples decide to form a partnersip by combning the assets of their separate businessesPayne contributes the lowing assets to the partmensthip:cash$16.510, accounts necewable wigh a face amount af $3 the parton ague that $7.630 of ths a ccurta recueable are cumpla tuty wartieas and nat toa to accepted by tho patr arvup, that SS3,000 is a ruunable alowance ยาย unitecttity of the remaning acounta, that the nod andse comunts Recevable

Answer 1

Cash $16,510

Accounts Receivable $165,730 ($173,360 - $7,630)

Merchandise Inventory $72,310

Equipment $62,910

Allowance for bad debts $13,000

Capital $304,460