Solution-Prepare separate journal entries to record the

Prepare separate journal entries to record the transfer

Reference no: EM13526415

The post-closing trial balances of two proprietorships on January 1, 2012, are presented below.

	Williams Compan0079		Jones Company
	Dr.	Cr.	Dr.	Cr.
Cash	$ 14,000		$12,000
Accounts receivable	17,500		26,000
Allowance for doubtful accounts		$ 3,000		$ 4,400
Inventory	26,500		18,400
Equipment	45,000		29,000
Accumulated depreciation-equipment		24,000		11,000
Notes payable		18,000		15,000
Accounts payable		22,000		31,000
Williams, capital		36,000
Jones, capital				24,000
	$103,000	$103,000	$85,400	$85,400

Williams and Jones decide to form a partnership, Wijo Company, with the following agreed upon valuations for noncash assets.

	Williams Company	Jones Company
Accounts receivable	$17,500	$26,000
Allowance for doubtful accounts	4,500	4,000
Inventory	28,000	20,000
Equipment	23,000	16,000

All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. Further, it is agreed that Williams will invest an additional $5,000 in cash, and Jones will invest an additional $19,000 in cash.

Instructions

(a) Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership.

(b) Journalize the additional cash investment by each partner.

Reference no: EM13526415

Questions Cloud

Identify the inventory method : Your company uses LIFO and is having an unexpectedly good year. It is near year end, and you need to keep net income from increasing too much in order to save on income tax.

What is its speed at the instant it leaves the table : A small ball rolls horizontally off the edge of a tabletop that is 1.20 m high. It strikes the floor at a point 1.76 m horizontally away from the edge of the table. What is its speed at the instant it leaves the table

Domain functional level drop-down menu : Why does the Domain Controller Options page have a Domain functional level drop-down menu, but not a Forest functional level drop-down menu?

Why is dr. carter having such a hard time with the idea : Why is Dr. Carter having such a hard time with the idea of marketing?

Prepare separate journal entries to record the transfer : Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership and journalize the additional cash investment by each partner.

Obtain the charge per unit area on the plastic sheet : A 19 g piece of Styrofoam carries a net charge of -8.5 µC, What is the charge per unit area on the plastic sheet

Calculate the electric charge in the earth : Suppose that the electric field in the Earth's atmosphere is E = 1.38 102 N/C, pointing downward. Determine the electric charge in the Earth

What is the total amount invested : Jurnalize the entires for july 12 and November 18, assuming that the common stock is to be continued with the stated value and what is the total amount invested ( total paid-in capital) by all stock holders as of November 18

Lot-sizing methods attempt to balance ordering : Lot-sizing methods attempt to balance ordering

User Account

All Pages

Prepare separate journal entries to record the transfer

Reference no: EM13526415

Reference no: EM13526415

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT