EX 12-2 Record partner’s original investment
Jessica Kimble and Carlos Segura form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Kimble, sole proprietorship:
|
Cash |
$50,000 |
|
|
Accounts receivable |
$100,000 |
|
|
Less: Allowance for doubtful accounts |
5,900 |
94,100 |
|
Land |
180,000 |
|
|
Equipment |
$70,000 |
|
|
Less: Accumulated depreciation—equipment |
43,000 |
27,000 |
|
Total assets |
$351,100 |
|
|
Accounts payable |
$22,500 |
|
|
Notes payable |
80,000 |
|
|
Jessica Kimble, capital |
248,600 |
|
|
Total liabilities and owner’s equity |
$351,100 |
Kimble obtained appraised values for the land and equipment as follows:
|
Land |
$284,000 |
|
Equipment |
19,000 |
An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $7,000.
Journalize the partnership’s entry for Kimble’s investment.