A cash receipts journal is provided in the Working Papers. Your instructor will guide you through the following examples. Betty Jensen and Glen Chau agree to form a partnership on April 1 of the current year. The partnership assumes the assets and liabilities of Ms. Jensen's existing business. Mr. Chau invests cash equal to Ms. Jensen's investment. Partners share equally in all changes in equity. The March 31 balance sheet for Ms. Jensen's existing business is shown in the Working Papers. Source documents are abbreviated as follows: memorandum, M; receipt, R.

Journalize the transactions in a cash receipts journal on April 1 of the current year.

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Apr. 1. Received cash from partner, Glen Chau, as an initial investment, $42,000.00. R1. 1. Accepted assets and liabilities of Betty Jensen's existing business as an initial investment, $42,000.00. R2.