Journalize the entries in the partnership accounts

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Question - Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivable with a face amount of $47,000 and equipment with a cost of $193,000 and accumulated depreciation of $104,000. The partners agree that the equipment is to be valued at $81,000, that $3,400 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $ 1,000 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Fallows contributes cash of $28,700 and merchandise inventory of $56,500. The partners agree that the merchandise inventory is to be valued at $61,000. Journalize the entries in the partnership accounts for (a) Barton's investment and (b) Fallows's investment.

Reference no: EM133072776

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