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Recording partner's original 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 Cash $ 65,000 Accounts receivable $125,000 Less: Allowance for doubtful accounts 7,200 117,800 Land 215,000 Equipment $ 78.000 Less: Accumulated depreciation—equipment 41,000 37,000 Total assets $434,800 Accounts payable $ 24,800 Notes payable 76,000 Hannah Freeman, capital 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 they allow ante for doubtful accounts should be increased to $9,500. Journalize the partnership's entry for Freeman’s investment.

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 12, Problem 12.2EX
Textbook Problem

Recording partner's original 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

Cash   $ 65,000
Accounts receivable $125,000  
Less: Allowance for doubtful accounts 7,200 117,800
Land   215,000
Equipment $ 78.000  
Less: Accumulated depreciation—equipment 41,000 37,000
Total assets   $434,800
Accounts payable   $ 24,800
Notes payable   76,000
Hannah Freeman, capital   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 they allow ante for doubtful accounts should be increased to $9,500.

Journalize the partnership's entry for Freeman’s investment.

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Chapter 12 Solutions

Accounting
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