Question: Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The following balance sheet information is provided by Derr from

Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The following balance sheet information is provided by Derr from his sole proprietorship.

The new partners obtain appraised values and agree to accept the book values for Derr's assets and liabilities except for the following: Equipment is valued at $5,000, and land is worth $8,000.
Required
Prepare the partnership's journal entry to record Derr's investment.

C. 1,000 44500 3,100 A00 1Cash Accounts payable Total liabilities M. Derr, Capital Sueliess 3 Equipment $11,000 5 Land 6 Total assets A,Do 10,000 2,400 iscl lieiny S10000

Step by Step Solution

★★★★★

3.48 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Cash 1000 Supplies 3000 Equipment 5000 Land 8000 Accoun... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1203-B-C-A-P-A-C(292).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Amanda Carcello and Miguel Gaspar form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Carcello, sole proprietorship: Cash $...

Jen Novinska and Jeff Quinlan form a partnership by combining assets of their separate businesses. The following balance sheet information is provided by Novinska from her sole proprietorship. The...

Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship: Hannah...

Please show all work Problem D-1A Recording partnership formation LO P1 Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The following balance sheet...

Problem D-1A Recording partnership formation LO P1 Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The following balance sheet information is provided...

Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The following balance sheet is from Derr's sole proprietorship. The market value of Derr's equipment is...

apter 12 Partnership Formation Help Se Saving 3 Problem 12-1A Recording partnership formation LO P1 334 oints Mike Derr and Mark Finger form a partnership by combining assets of their separate...

Can someone help me please conret Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The f lowing balance sheet information is provided by Derr from his...

they are all part of one problem, which is why they say part 2,3,4.... part 2 is a journal and the first picture was the beginning information of the entire serial problem. i will repost it so it is...

How are changes in stock prices associated with changes in earnings? What does research evidence indicate about the economic consequences of earnings information?

Which of the following has the highest value of overall heat transfer coefficient? 1) Steam condensers 2) Steam 3) Alcohol condensers 4) Feed water heaters

What is inflation?

26. Appendix B Data for Weights of Quarters Refer to Data Set 14 in Appendix B and use the sample data. a. Construct a 99% confidence interval estimate of the standard deviation of weights of...

Label the following headings, line items, and notes with the numbers 1 through 13 according to their sequential order (from top to bottom) for presentation of the statement of cash flows. a. Cash...

For each of the following three separate cases X, Y and Z, compute cash flows from operations using the indirect method. The list includes all balance sheet accounts related to cash from operating...

Use the following information to determine this companys cash flows from operating activities using the indirect method. MOSS COMPANY Income Statement For Year Ended December 31,2015 MOSS COMPANY...

O d. Avoidance The probability distribution associated with the role of a die: * O a. can be used to forecast the risk of restaurant law suits b. is a non-normal distribution O c. is known in advance...

Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 10 percent. Year Project...

Net present value Using a cost of capital of 16%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of...