Question

Terry, nick, and frank are forming the doctor partnership. terry is transferring $30,100 of personal cash and equipment worth $25,100 to the partnership. nick owns land worth $17,600 and a small building worth $75,100, which he transfers to the partnership. there is a long-term mortgage of $19,900 on the land and building, which the partnership assumes. frank transfers cash of $7,100, accounts receivable of $36,300, supplies worth $3,600, and equipment worth $22,100 to the partnership. the partnership expects to collect $31,300 of the accounts receivable.

Answer 1

Balance Sheet

Assets

Current Assets
Cash 37200
Accounts Receivable 36300
Less: Allowance for Doubtful Accounts (5000) [Computation: 36300-31300)
Supplies 3600
Total Current Assets 72100

Property, Plant, and Equipment
Land 17600
Building 75100
Equipment 47200
Total Property, Plant, and Equipment 139900
Total Assets $212000

Liabilities
Long term Liabilities
Mortagage Payable 19900

Owner's Equity
Terry, Capital 55200
Nick, Capital 72800
Frank, Capital 64100

Total Owner's Equity 192100
Total Liabilities and Owner's Equity $212000