Assets Liabilities & O$.$E

Cash $10,000$ Capital $133,000$

AR $5,000$ Net Income $7,000$

Building $100,000$

$(-)$ Acc. Dep. $(60,000)40,000$ Accounts Payable $20,000$

Goodwill $100,000$

Prepaid Advertising $5,000$

Total Assets $160,000$ Total Liabilities & OE $160,000$

Homework:

Ex: $1$

On $1/1/2024,$ Ahmed, Badr & Carmen agreed to form a partnership with the following agreement:

$$Ahmed will have $25\%$ and contribute $$50,000$ cash at the formation date.

$$Badr will have $20\%$ and contribute land cost $$10,000$ and had a market value of $$50,000$ at the

formation date.

$$Carmen contributed her share by transferring the assets and liabilities of her sole business except

cash which had the following Balance Sheet at the formation date: as mentioned above

The market value of Building is $$50,000$ and the agreed net realizable value of AR is $$4,000.$

Required:

$$Prepare the Journal Entry $($entries$)$ to record the formation of the partnership.

$$Prepare the Opening Balance Sheet of the partnership at the formation date.

Ex: $2$

The same previous exercise but assume that the partners agreed to record goodwill if needed. solve in details