R. Black and B. Rivers decide to organize the Black River Partnership. Black contributes $10,000 cash and
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R. Black and B. Rivers decide to organize the Black River Partnership. Black contributes $10,000 cash and equipment that originally cost $7,000. The accumulated depreciation on the equipment is $2,500 and the fair value is $4,000. Rivers contributes $2,400 of accounts receivable, of which the partners agree that $2,000 is collectible. Rivers will also contribute the amount of cash required so both partners have the same amount in their capital accounts. Prepare the entry to record each partner's investment in the partnership on July 1, 2014.
PartnershipA legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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