On June 1 Matthew Deck and Jennifer Rusk agree to combine their sole proprietorships into a new business, Dreamscapes Catering, organized as a partnership. The partnership will take over all assets of the two proprietorships. The assets invested by Deck and Rusk follow. 

Instructions

Prepare the journal entries required to record the investment by each partner. Use page 1 of the general journal in your working papers. The source document is Memorandum 1.

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Investments Cash Accounts receivable Merchandise Equipment Van Office Furniture Deck $ 1,200 2,000 8,000 5,000 12,000 1,000 Rusk $ 2,300 7,000 5,000 12,000 500