Question

PART IV: In January of Yr1, Casey Bundy and Luke Ward, college friends, decided to go into business in Lafayette, Louisiana as professional dog walkers and pet sitters. You have been hired as the chief accountant/management consultant for the new company. 1. In forming the partnership, Casey invests the following: Cash $8,000 Equipment with a Fair Market Value of $4,000. The equipment was on Caseys books at its original cost of $6,000 less $1,400 in depreciation. Luke invests Cash $5,000: Accounts Receivable of $7,000 with a related Allowance for Doubtful Accounts of $600. The partners agree that the Allowance for Doubtful accounts should be $800. Prepare the entry to record the initial investment of the partners CaseyLuke Partnership General Journal Date Account Tities Ref Debit Credit 1/1/Yrl

Answer 1

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