Answer:
Cash 36,000
Inventory 42,000
Land 175,000
Notes Payable 35,000
Austin Fisher, Capital 218,000
PE 12-1B Journalizing partner’s original investment
Austin Fisher contributed land, inventory, and $36,000 cash to a partnership. The land had a book value of $120,000 and a market value of $175,000. The inventory had a book value of $50,000 and a market value of $42,000. The partnership also assumed a $35,000 note payable owed by Fisher that was used originally to purchase the land. Provide the journal entry for Fisher’s contribution to the partnership.
Answer:
Cash 36,000
Inventory 42,000
Land 175,000
Notes Payable 35,000
Austin Fisher, Capital 218,000
Answer:
Cash 36,000
Inventory 42,000
Land 175,000
Notes Payable 35,000
Austin Fisher, Capital 218,000