Answer:
Cash 51,000
Accounts Receivable 65,000
Patent 195,000
Accounts Payable 12,000
Allowance for Doubtful Accounts 3,000
Rachel Bell, Capital 296,000
PE 12-1A Journalizing partner’s original investment
Rachel Bell contributed a patent, accounts receivable, and $51,000 cash to a partnership. The patent had a book value of $45,000. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised at $195,000. The accounts receivable control account was $65,000, with an allowance for doubtful accounts of $3,000. The partnership also assumed a $12,000 account payable from Bell. Provide the journal entry for Bell’s contribution to the partnership.
Answer:
Cash 51,000
Accounts Receivable 65,000
Patent 195,000
Accounts Payable 12,000
Allowance for Doubtful Accounts 3,000
Rachel Bell, Capital 296,000
Answer:
Cash 51,000
Accounts Receivable 65,000
Patent 195,000
Accounts Payable 12,000
Allowance for Doubtful Accounts 3,000
Rachel Bell, Capital 296,000