Study Problem 12-1B on page 623.

(a) Find the net asset value of Capri's initial investment in the partnership.

(b) How much cash did Capri pay to join the firm?

(c) Summarize findings. Cite relevant GAAP.

ore dhpment is recorded at its current market value of $5,400 in the preceding entry. The contributions of Foster would be recorded in an entry similar to the entry for Stevens Example Exercise 12-1 Journalize Partner's Original Investment Obz Reese Howell contributed equipment, inventary, and 534,000 cash to a partnership The sculpment had a book value of $23,000 and a market value of $29,000. The inventory had a book value of $60.000 but only had a market value of $15.000 due to obsolescence. The partnership also assumed a $12.000 note payable owed by Howell that was used originally to purchase the equipment Provide the journal entry for Howell's contribution to the partnership Continue Cena W202 590 Chapter 12 Accounting for Partnerships and Limited Liability Companies Follow My Example 12-1 Cash Inventory Equipment Notes Payable Rose Howell, Capital 34,000 15,000 29,000 12,000 $6,000 Practice Exercises: PE 12.1A PE 12-18 Dividing Income Income or losses of the partnership are divided as specified in the partnership agree ment. If there is no specification or agreemene income and losses are divided equally Common methods of lividiny arteshin me he the following ore dhpment is recorded at its current market value of $5,400 in the preceding entry. The contributions of Foster would be recorded in an entry similar to the entry for Stevens Example Exercise 12-1 Journalize Partner's Original Investment Obz Reese Howell contributed equipment, inventary, and 534,000 cash to a partnership The sculpment had a book value of $23,000 and a market value of $29,000. The inventory had a book value of $60.000 but only had a market value of $15.000 due to obsolescence. The partnership also assumed a $12.000 note payable owed by Howell that was used originally to purchase the equipment Provide the journal entry for Howell's contribution to the partnership Continue Cena W202 590 Chapter 12 Accounting for Partnerships and Limited Liability Companies Follow My Example 12-1 Cash Inventory Equipment Notes Payable Rose Howell, Capital 34,000 15,000 29,000 12,000 $6,000 Practice Exercises: PE 12.1A PE 12-18 Dividing Income Income or losses of the partnership are divided as specified in the partnership agree ment. If there is no specification or agreemene income and losses are divided equally Common methods of lividiny arteshin me he the following