On July 1 of the current year, Roy Hatfield and Michelle Allen form a partnership. The partners share equally in all changes in equity. The partnership assumes the assets and liabilities of Roy's existing business. Michelle invests cash equal to Roy’s investment. The June 30 balance sheet for Roy’s existing business is as follows.

Instructions:

Journalize the transactions using page 1 of a cash receipts journal and page 1 of a general journal.

Transcribed Image Text:

ASSETS Hatfield Financial Services Balance Sheet June 30, 20-- Current Assets: Accounts Receivable Cash... Less Allowance for Uncollectible Accounts Supplies. Total Current Assets.. Plant Assets: Equipment Total Assets Accounts Payable. LIABILITIES OWNER'S EQUITY Roy Hatfield, Capital...... Total Liabilities and Owner's Equity $4,291.23 $3,303.60 35.79 3,267.81 290.19 $ 7,849.23 4,378.14 $12,227.37 $ 227.37 12,000.00 $12,227.37