Holly Renfro contributed a patent, accounts receivable, and $20,000 cash to partnership. The patent had a book value of $8,000. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised at $92,000. The accounts receivable control account was $45,000, with an allowance for doubtful accounts of $3,000. The partnership also assumed a $14,000 account payable owed to a Renfro supplier. On December 31, provide the journal entry for Rentro's contribution to the partnership. Refer to the Chart of Accounts for exact wording of account titles.

Holly Renfro contributed a patent, accounts receivable, and $20,000 cash to partnership. The patent had a book value of $8,000. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised at $92,000. The accounts receivable control account was $45,000, with an allowance for doubtful accounts of $3,000. The partnership also assumed a $14,000 account payable owed to a Renfro supplier. On December 31, provide the journal entry for Rentro's contribution to the partnership. Refer to the Chart of Accounts for exact wording of account titles.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.22E

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