Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide...

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Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to combine their separate businesses which were operated as proprietorships to form M & B Auto Repair, a partnership. Information from their separate balance sheets is presented below: Marden Auto Repair Baker Auto Repair Cash Accounts receivable $10,800 $14,100 13,400 11,000 Allowance for doubtful accounts 1,400 4,300 Accounts payable 6,000 5,600 Notes payable - 4,500 Salaries and wages payable 1,050 2,000 Equipment Accumulated depreciation-equipment 12,900 2,100 25,600 4,700 It is agreed that the expected realizable value of Marden's accounts receivable is $12,000 and Baker's receivables is $6,700. The fair value of Marden's equipment is $14,400 and the value of Baker's equipment is $19,500. It is further agreed that the new partnership will assume all liabilities of the proprietorships with the exception of the notes payable on Baker's balance sheet which he will pay himself. Prepare the journal entries necessary to record the formation of the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Equipment Salaries and Wages Payable Accounts Receivable Allowance for Doubtful Accounts Accounts Payable R. Marden, Capital (To record R. Marden's investment) Cash Equipment Salaries and Wages Payable Accounts Payable Allowance for Doubtful Accounts Accounts Payable T. Baker, Capital (To record Baker's investment) Debit Credit 10800 14400 14100 19500 1400 6000 5600 4300 Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to combine their separate businesses which were operated as proprietorships to form M & B Auto Repair, a partnership. Information from their separate balance sheets is presented below: Marden Auto Repair Baker Auto Repair Cash Accounts receivable $10,800 $14,100 13,400 11,000 Allowance for doubtful accounts 1,400 4,300 Accounts payable 6,000 5,600 Notes payable - 4,500 Salaries and wages payable 1,050 2,000 Equipment Accumulated depreciation-equipment 12,900 2,100 25,600 4,700 It is agreed that the expected realizable value of Marden's accounts receivable is $12,000 and Baker's receivables is $6,700. The fair value of Marden's equipment is $14,400 and the value of Baker's equipment is $19,500. It is further agreed that the new partnership will assume all liabilities of the proprietorships with the exception of the notes payable on Baker's balance sheet which he will pay himself. Prepare the journal entries necessary to record the formation of the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Equipment Salaries and Wages Payable Accounts Receivable Allowance for Doubtful Accounts Accounts Payable R. Marden, Capital (To record R. Marden's investment) Cash Equipment Salaries and Wages Payable Accounts Payable Allowance for Doubtful Accounts Accounts Payable T. Baker, Capital (To record Baker's investment) Debit Credit 10800 14400 14100 19500 1400 6000 5600 4300

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To record the formation of the partnership M B Auto Repair the journal entries are as follows ... View the full answer