Greg Wayne has owned and operated a proprietorship for several years. On January 1, he decides to terminate this business and become a partner in the firm of Petry and Wayne. Wayne’s investment in the partnership consists of $15,000 in cash, and the following assets of the proprietorship: accounts receivable $14,000 less allowance for doubtful accounts of $2,000, and equipment $20,000 less accumulated depreciation of $4,000. It is agreed that the allowance for doubtful accounts should be $3,000 for the partnership. The fair value of the equipment is $17,500.

Instructions
Journalize Wayne’s admission to the firm of Petry and Wayne.