Ethan Smith and Crystal Banks form a partnership on May 1, 201X. Smith contributes cash of $40,000.

Question:

Ethan Smith and Crystal Banks form a partnership on May 1, 201X. Smith contributes cash of $40,000. Banks contributes $28,000 cash and land costing $18,100 with a current fair value of $29,500. A $30,000 note payable due to Banks is assumed by the new partnership. Please prepare the journal entries to record Smith’s and Banks’s investment in the partnership.

Partnership
A 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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

College Accounting A Practical Approach

ISBN: 9780134729312

14th Edition

Authors: Jeffrey Slater, Mike Deschamps

Question Posted: