- May 26, 2004
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I am stuck on couple of problems. I dont understand how to do these. Who knows alot about accounting or has a major in this. Thanks. This problem is on formation partnership.
Mary Hartmann, sole proprietor of a hardware business, decides to form a partnership with Ned Isaacs. Mary’s accounts are as follows:
Book Value Market Value
Cash 20,000 20,000
Accounts Receivable (net) 52,000 40,000
Inventory 112,000 125,000
Land 40,000 100,000
Building (net) 300,000 340,000
Accounts Payable 25,000 25,000
Mortgage Payable 75,000 75,000
Ned agrees to contribute 70,000 for a 20% interest. Journalize the entries to record (a) Mary’s investment and (b) Ned’s investment.
Mary Hartmann, sole proprietor of a hardware business, decides to form a partnership with Ned Isaacs. Mary’s accounts are as follows:
Book Value Market Value
Cash 20,000 20,000
Accounts Receivable (net) 52,000 40,000
Inventory 112,000 125,000
Land 40,000 100,000
Building (net) 300,000 340,000
Accounts Payable 25,000 25,000
Mortgage Payable 75,000 75,000
Ned agrees to contribute 70,000 for a 20% interest. Journalize the entries to record (a) Mary’s investment and (b) Ned’s investment.