Kimberly Payne and Arionna Maples decide to form a partnership by
combining the assets of their separate businesses. Payne
contributes the following assets to the partnership: cash, $16,510;
accounts receivable with a face amount of $173,360 and an allowance
for doubtful accounts of $6,260; merchandise inventory with a cost
of $76,930; and equipment with a cost of $142,650 and accumulated
depreciation of $92,720.
partners agree that $7,630 of the accounts receivable are
completely worthless and are not to be accepted by the partnership,
that $13,000 is a reasonable allowance for the uncollectibility of
the remaining accounts, that the merchandise inventory is to be
recorded at the current market price of $72,310, and that the
equipment is to be valued at $62,910.
Journalize the partnership’s entry to record Payne’s investment.
For a compound transaction, if an amount box does not require an
entry, leave it blank.