Question

Karen and Brenda form a partnership on June 1, 2005. Karen invested in the partnership the...

Karen and Brenda form a partnership on June 1, 2005. Karen invested in the partnership the following at fair market value:

Cash

15,000

Accounts receivable

10,500

Land

60,000

Machinery

85,000

Accounts payable

16,000

Notes payable

48,000

Brenda invested $75,000 in cash and a truck with a fair market value of $25,000.

Required:

Prepare journal entries to show the information of the partnership.

Please do not copy from chegg otherwise i have to report the answer. Explain the answer throughly with showing each step of the calculation.

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Homework Answers

Answer #1
S.No. Account Titles & Explanation Debit $ Credit $
1 Cash      15,000
Accounts receivable      10,500
Land      60,000
Machinery      85,000
Accounts Payable      16,000
Notes Payable      48,000
Karen, Capital ( Balancing Figure ) 106,500
( To record karen Investment )
2 Cash      75,000
Truck      25,000
Brenda , Capital 100,000
( To record Brenda Investment )
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