Question

Recording partner's original investment Instructions Chart of Accounts Journal Instructions Kimberty Payne and Arionna Maples decide to form a partnership by combining the assets of their separate businesses. Payme contributes the following assets to the partnership: cash, $23,820; accounts receivable with a face amount of $154,070 and an alowance for doubtful accounts of $3,930; merchandise inventory with a cost of $88,010; and equipment with a cost of $123,640 and accumulated depreciation of $48,490. The partners agree that $5,890 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $5,120 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 $100,740, and that the equipment is to be valued at $80,180 On December 1, jounalize the partnership's entry to record Payne's investment. Refer to the Chart of Accounts for exact wording of account itles

Answer 1

										Accounting equation
	Date	Description					Post Ref.	Debit	Credit	Assets	Liabilities	Equity
	Dec 1.	Cash						23820		23820
		Accounts receivable			(154070-5890)			148180		148180
		Merchandise inventory						100740		100740
		Equipment						80180		80180
		Allowance for doubtful accounts							5120	-5120
		Kimberly payne,Capital							347800			347800
		(Capital contribution by the partner)