A cash receipts journal is provided in the Working Papers. Work independently to complete the following problem.

David Rice and Tanya Taylor agree to form a partnership on July 1 of the current year. The partnership assumes the assets and liabilities of Mr. Rice’s existing business. Ms. Taylor invests cash equal to Mr. Rice’s investment. Partners share equally in all changes in equity. The June 30 balance sheet for Mr. Rice's existing business is shown in the Working Papers. Source documents are abbreviated as follows: receipt, R.

Journalize the transactions in a cash receipts journal on July 1 of the current year.

Transcribed Image Text:

July 1. Received cash from partner, Tanya Taylor, as an initial investment, $32,000.00. R1. 1. Accepted assets and liabilities of David Rice's existing business as an initial investment, $32,000.00. R2.