Question: K M Jackson as his original investment in the firm
K. M. Jackson, as his original investment in the firm of Jackson and Scott, contributes equipment that had been recorded in the books of his own business as costing $ 140,000, with accumulated depreciation of $ 86,000. The partners agree on a valuation of $ 65,000. They also agree to accept Jackson’s accounts receivable of $ 72,000, collectible to the extent of 90 percent. Give the journal entry to record Jackson’s investment in the partnership of Jackson and Scott on August 15.
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