Question

K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $45,000 of personal cash to the partnership. Rosen owns land worth $10,000 and a small building worth $75,000, which she transfers to the partnership. Toso transfers to the partnership cash of $10,000, accounts recevable of $27,000 and equipment worth $14,000. The partnership expects to collect $24,300 of the accounts receivable.
Prepare the journal entries to record each of the partners' investments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation Debit Credit
(To record investment of Decker.)
(To record investment of Rosen.)
(To record investment of Toso.)
What amount would be reported as total owner's equity immediately after the investment?
Total owner's equity$_______

Answer 1

Answer:

to record Decker's investment:

Dr Cash 45000  

    Cr Decker, Capital 45000

to record Rosen's investment:

Dr Land 10,000  

Dr Building 75,000  

    Cr Rosen, Capital 85,000

to record Toso's investment:

Dr Cash 10,000  

Dr Accounts Receivable 27,000  

Dr Equipment 14,000  

    Cr Allowance for Doubtful Accounts 2,700

    Cr Toso, Capital 48,300

total owners' equity = $178,300