Obama, Bush, and Clinton are forming a partnership. Obama is transferring $$150,000$ of personal cashand $$50,000$ of accounts receivable to the partnership. Bush is contributing land, a building, andequipment valued at $$100,000,$ $$300,000,$ and $$50,000$ respectively. Clinton is contributing cash of$$100,000,$ accounts receivable of $$80,000$ and equipment worth $$40,000.$ They all agree that thepartnership will collect $90\%$ of each contributing partner$$s accounts receivable.

Instructions:

a$)$ Show the necessary journal entries to record each partner$$s initial contribution to the partnership.

b$)$ Instead of separate journal entries as in $($a$)$ above, show what a single compound journal entry would look like.

c$)$ What is the total partnership capital after all the contributions have been made?

Answer rating: 100% (QA)

a To record each partners initial contribution to the partnership we need to make the following jour... View the full answer