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Suzy copay has owned and operated a proprietorship for several years. On Jan 1, she decides to terminate this business and become a partner in the firm of vopat and sigma.
Vopat's investment in the partnership consists of $11,000 in cash and the following:
accounts receivable $14200
less allowance for doubtful accounts of $1600, and
equipment $19300
less accumulated depreciation of $3500.
Point 1: It is agreed that the allowance for doubtful accounts should be $2400 for the partnership. The fair value of the equipment is $12700
Question 1: Journalize vopat admission to the firm of vopat and sigma?
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