Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship: Hannah Freeman Proprietorship Balance Sheet June 1, 20Y3 $ 65,000 Cash Accounts receivable $125,000 Less: Allowance for doubtful accounts 7,200 117,800 Land 215,000 $ 78,000 Equipment Less: Accumulated depreciation-equipment 41,000 37,000 Total assets $434,800 $ 24,800 Accounts payable Notes payable Hannah Freeman, capital 76,000 334,000 Total liabilities and owner's equity $434,800 Freeman obtained appraised values for the land and equipment as follows: Land $320,000 Equipment 34,800 An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $9,500. Journalize the partnership's entry for Freeman's investment.
Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship: Hannah Freeman Proprietorship Balance Sheet June 1, 20Y3 $ 65,000 Cash Accounts receivable $125,000 Less: Allowance for doubtful accounts 7,200 117,800 Land 215,000 $ 78,000 Equipment Less: Accumulated depreciation-equipment 41,000 37,000 Total assets $434,800 $ 24,800 Accounts payable Notes payable Hannah Freeman, capital 76,000 334,000 Total liabilities and owner's equity $434,800 Freeman obtained appraised values for the land and equipment as follows: Land $320,000 Equipment 34,800 An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $9,500. Journalize the partnership's entry for Freeman's investment.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 18CE
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Transcribed Image Text:Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their
former businesses. The following balance sheet information is provided by Freeman,
sole proprietorship:
Hannah Freeman Proprietorship
Balance Sheet
June 1, 20Y3
$ 65,000
Cash
Accounts receivable
$125,000
Less: Allowance for doubtful accounts
7,200
117,800
Land
215,000
$ 78,000
Equipment
Less: Accumulated depreciation-equipment
41,000
37,000
Total assets
$434,800
$ 24,800
Accounts payable
Notes payable
Hannah Freeman, capital
76,000
334,000
Total liabilities and owner's equity
$434,800
Freeman obtained appraised values for the land and equipment as follows:
Land
$320,000
Equipment
34,800
An analysis of the accounts receivable indicated that the allowance for doubtful accounts
should be increased to $9,500.
Journalize the partnership's entry for Freeman's investment.
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