Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume that two individuals agree to form a partne

Assume that two individuals agree to form a partnership. Partner A is contributing an operating...

70.2K

Verified Solution

Question

Accounting

Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports the following balance sheet:

Cash

.$120,000

Accounts payable.

$160,000

Receivables

160,000

Accrued liabilities

120,000

Inventories

200,000

Total liabilities

$280,000

Total assets

$480,000

Net assets

$200,000

Partner B is contributing cash of $280,000. The partners agree that the initial capital of the partnership should be shared equally.

Required: Prepare the journal entry to record the capital contributions of the partners assuming that the partners wish to employ the Bonus Method.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Prove that 1+ cos theta + cos 2theta + .... cos ntheta = 1/2 + (sin(n+1/2)theta)/2sin(theta/2)

Advance Math
Q

The purpose of the lysis procedure is: to sequence the 16S rRNA gene to separate the pieces...

Biology
Q

What dictate the types and amount of nutrients in food that will be transformed and reassembled...

Biology
Q

What are the common sources of a company's competitive advantage? Do you think that it would...

General Management
Q

Lee Jenkins worked the following hours as a manager for a local Pizza Hut: 13...

Basic Math
Q

Translate the given recursive formula into an explicit formula a 1 18 a n a...

Statistics
Q

Given the region bounded by the graphs of y In x y 0 and x...

Calculus
Q

Exercise 14 3 1 Compute a u v where u 1 b x y where...

Algebra
Q

Data relating to the balances of various accounts affected by adjusting or closing entries appear...

Accounting
Q

What is this? When comparing the rule under any of...

Accounting
Q

Cullumber Corporation has collected the following information related to its December 31,2025, balance sheet. ...

Accounting
Q

III. Suppose the domestic U.S. beta of IBM is 1.0, that is PBM =1.0, and...

Finance