Lamar Kline and Kevin Lambert decide to form a partnership by combining the assets of their separate businesses. Kline contributes the following assets to the partnership: cash, $10,000; accounts receivable with a face amount of $123,000 and an allowance for doubtful accounts of $7,300; merchandise inventory with a cost of $85,000; and equipment with a cost of $140,000 and accumulated depreciation of $90,000.
The partners agree that $5,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $8,100 is a reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inventory is to be recorded at the current market price of $74,300, and that the equipment is to be valued at $67,000.
Journalize the partnership’s entry to record Kline’s investment.