Gina Sanchez and Carlo Torres are forming a partnership, Spanish Leather Goods, to import from Spain. Sanchez

Question:

Gina Sanchez and Carlo Torres are forming a partnership, Spanish Leather Goods, to import from Spain. Sanchez is especially artistic and will travel to Spain to buy the merchandise. Torres is a super salesman and has already lined up several department stores to sell the leather goods.
Requirements
1. If Sanchez and Torres do not draft a written profit-sharing agreement, how will profits or losses be shared?
2. Sanchez is contributing $100,000 in cash and of $20,000. Torres is contributing a building that cost Torres $75,000. The building’s current market value is $90,000. Journalize the investment of the two partners.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...