Question

Instructions Chart of Accounts General Journal Instructions Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $47,000 and equipment with a cost of $178,000 and accumulated depreciation of $102,000. The partners agree that the equipment is to be valued at $68,400, that $4,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,200 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $20,500 and merchandise inventory of $45,000. The partners agree that the merchandise inventory is to be valued at $48,500 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 tifles.

Answer 1

Date	General Journal	Debit	Credit
(a)	Accounts receivable	$43,000
	Equipment	68,400
	Allowance for doubtful accounts		$2,200
	Capital, Jesse		$109,200
(b)	Cash	$20,500
	Merchandise inventory	$48,500
	Capital, Tim		$69,000

Investment by Jesse = ( Face value of accounts receivable - Worthless receivables - Allowance for doubtful accounts) + Fair value of equipment

= (47,000-4,000-2,200) + 68,400

= $109,200

Kindly comment if you need further assistance.

Thanks‼!