Answer:
Explanation:
a. The journal entries are shown below:
Cash $21,060
Merchandise inventory $56,290
To Eric Keene's Capital $77,350
(To record investment made)
Accounts receivable $17,770
Equipment $54,190
Cash (Liabilities - Assets) $40,820
To Allowance for doubtful accounts $1,950
To Accounts payable $14,910
To Notes payable (current) $35,970
To Reene Wallace's capital $59,950
(Being capital contribution by Reene wallace is recorded)
2.
<u>KEENE AND WALLACE
</u>
<u>
Balance Sheet
</u>
<u>
March 1, 20Y8</u>
Assets
Current Assets
Cash (21,060 + 40,820) $61,880
Accounts Receivable Less Allowance $15,820
Merchandise inventory $56,290
Total current assets $133,990
Property, plant and Equipment
Equipment $54,190 54,190
Total Assets $188,180
Liabilities
Current Liabilities
Accounts Payable $14,910
Notes Payable $35,970
Total liabilities $50,880
Partner's Equity
Eric Keene's capital $77,350
Renee Wallace's capital $59,950
Total partner's equity $137,300
Total liabilities and partner's equity $188,180
