Instructions

Identify each statement as true or false. If false, indicate how to correct the statement.

Journalize entry for formation of a partnership.

E$12\mathrm{.}2($LO $1),$ AP K$.$ Decker, S$.$ Rosen, and E$.$ Toso are forming a partnership. Decker is transferring $$50,000$ of personal cash to the partnership.

Rosen owns land worth $$15,000$ and a small building worth $$80,000,$ which she transfers to the partnership. Toso transfers to the partnership cash of

$$9,000,$ accounts receivable of $$32,000,$ and equipment worth $$39,000.$ It is agreed that the allowance for doubtful accounts should be $$3,000$ for the

partnership.

Instructions

a$.$ Prepare the journal entries to record each of the partners' investments.

b$.$ What amount would be reported as total owners' equity immediately after the investments?

Journalize entry for formation of a partnership.