On May 1, 20X1, James Dear and Jerold Morgan formed The Wine Shop. The two partners invested

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On May 1, 20X1, James Dear and Jerold Morgan formed The Wine Shop. The two partners invested cash and other assets and liabilities with the following agreed-upon values:

Dear: Cash, $6,500; Merchandise inventory, $12,500; Equipment, $38,500; Accounts payable, $6,000.
Morgan: Furniture $12,500; Cash, $18,500.

Dear is to own two-thirds of the capital, and Morgan is to own one-third of the capital, but they will split profits and losses equally.

Prepare a balance sheet for the partnership just after the assets and liabilities have been transferred to it.

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College Accounting Chapters 1-30

ISBN: 9781260247909

16th Edition

Authors: David Haddock, John Price, Michael Farina

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Question Posted: Sep 20, 2022 03:12 AM

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On May 1, 20X1, James Dear and Jerold Morgan formed The Wine Shop. The two partners invested

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Cash Merchandise Inventory Furniture Equipment Total Assets The Wi...View the full answer

College Accounting Chapters 1-30

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