ron maples and mei cui form a partnership by combining assets of their former busine 644216
Ron Maples and Mei Cui form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Maples, sole proprietorship:
Cash |
|
$ 30,000 |
|
Accounts receivable |
$65,000 |
|
|
Less: Allowance for doubtful accounts |
3,200 |
61,800 |
|
Land |
|
120,000 |
|
Equipment |
$60,000 |
|
|
Less: Accumulated depreciation—equipment |
36,000 |
24,000 |
|
Total assets |
|
$235,800 |
|
|
|
|
|
Accounts payable |
|
$ 18,000 |
|
Notes payable |
|
45,000 |
|
Ron Maples, capital |
|
172,800 |
|
Total liabilities and owner’s equity |
|
$235,800 |
|
|
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Maples obtained appraised values for the land and equipment as follows: |
|||
Land |
$165,000 |
||
Equipment |
10,000 |
||
An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $5,000. Journalize the partnership’s entry for Maples’s investment.