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Airida [17]
3 years ago
7

Austin Fisher contributed land, inventory, and $32,000 cash to a partnership. The land had a book value of $59,000 and a market

value of $103,000. The inventory had a book value of $70,900 and a market value of $65,900. The partnership also assumed a $42,000 note payable owed by Fisher that was used originally to purchase the land. Required: Provide the journal entry for Fisher's contribution to the partnership. If an amount box does not require an entry, leave it blank.
Business
1 answer:
pochemuha3 years ago
6 0

Answer:

Journal entry for Fisher's contribution to the partnership

<em><u>Description</u></em>

Cash                         $32,000 (Debit)

Land                         $103,000 (Debit)

Inventory                  $65,900 (Debit)

Payable on Note      $42,000 (Credit)

Capital                      $158,900 (Credit)

NB: Capital= ($32,000 + $103,000 + $65,900 - $42,000) = $158,900

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