Make general journal entry to record investment by ronaldo

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A business owned by Cristiano Ronaldo was short of cash and Ronaldo therefore decided to form a Partnership with Lionel Messi, who was able to contribute cash to the new partnership. The assets contributed by Ronaldo appeared as follows in the balance sheet of her business: cash $600: account receivable, $34900, with an allowance for doubtful accounts of $960: inventory $45600: and store equipment, $21600. Ronaldo had recorded depreciation of $1800 during his use of the store equipment in his sole proprietorship.

Ronaldo and Messi agreed that the allowance for Doubtful accounts was in adequate and should be $1800.They also agreed that a fair value for the inventory was its replacement cost of $54000 and that the fair value of the store equipment was $19000.

Problem 1: You are required to open the partnership accounts by making a general journal entry to record the investment by Ronaldo?

Reference no: EM132808002

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