Question

LUPrect the statement. s. Rosen, and E. Toso alse ship liabilities ific assets he 30,000 of bu9,000,accounts receivable of $32.000, and equipment worth $39,000. The 12-2 K. Decker, l cash to the partnership. Rosen owns land worth $15,000 and a small of a partnership. S80.000, which she transfers to the partnership. Toso transfers to the part- o are forming a partnership. Decker is transferring Jounalics entry for formation s to collect $29,000 of the accounts receivable. ournal entries to record each of the partners investments. would be reported as total owners' equity immediately after the investments? (a) Prepare t nexpensive ment role.

Answer 1

Answer:

a)Journal entries to record each of Partner's investment in partnership
Sr No.	Account title & Explanation	Debit($)	Credit($)
i)	Cash	50,000
	Owner's Equity– K.Decker		50,000
	( To Record the cash invested by partner)
ii)	Land	15,000
	Building	80,000
	Owner's Equity – S.Rosen		95,000
	(To Record the investment made by partner)
iii)	Cash	9,000
	Accounts Receivable	32,000
	Equipment	39,000
	Allowance for doubtful debts($32000-$29,000)		3,000
	Owner's Equity – E.Toso		77,000
	(To Record the investment made by partner)

B) Owner's Equity
-K.Decker	$50,000
-S.Rosen	$95,000
-E.Toso	$77,000
Total Owner's Capital/ Equity	$222,000