Venssa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate

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Venssa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate businesses. Kaiser contributes the following assets to the partnership: cash, $25,800; accounts receivable with a face amount of $187,600 and an allowance for doubtful accounts of $5,400; merchandise inventory with a cost of $118,900; and equipment with a cost of $175,000 and accumulated depreciation of $58,200. The partners agree that $6,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $5,700 is a reasonable allowance for the un-collectability of the remaining accounts, that the merchandise inventory is to be recorded at the current market price of $131,400, and that the equipment is to be valued at $104,900. Journalize the partnership’s entry to record Kaiser’s investment.

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Accounting

ISBN: 9781337902687

28th Edition

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

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