Carmen Estrada and Paula Jeter agree to form a partnership on June 1 of the current year. The partnership assumes the assets and liabilities of Carmen’s existing business. Paula invests cash equal to Carmen's investment.

Partners share equally in all changes in equity. The May 31 balance sheet for Carmen's existing business is as follows.

Instructions

Journalize the transactions using page 1 of a cash receipts journal. Source documents are abbreviated as follows: memorandum, M; receipt, R.

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ASSETS Carmen's Crafts Balance Sheet May 31, 20- Current Assets: Cash Accounts Receivable Less Allowance for Uncollectible Accounts Merchandise Inventory Supplies...... Total Current Assets. Plant Assets: Equipment. Total Assets LIABILITIES Accounts Payable OWNER'S EQUITY Carmen Estrada, Capital .... Total Liabilities and Owner's Equity .... $14,532.00 $3,746.47 74.92 3,671.55 26,298.34 670.59 $45,172.48 9,481.12 $54,653.60 $ 8,653.60 46,000.00 $54,653.60 Transactions: June 1. Received cash from partner, Paula Jeter, as an initial investment, $46,000.00. R1. 1. Accepted assets and liabilities of Carmen Estrada's existing business as an initial investment, $46,000.00. R2.