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

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...
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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

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

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
Transcribed Image Text: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
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