Question

Melissa Shallowford contributed a patent, accounts receivable, and $22,340 cash to a partnership. The patent had a book value of $8,650. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised at $92,840. The accounts receivable control account was $34,300, with an allowance for doubtful accounts of $2,200. The partnership also assumed a $9,010 account payable owed to a Shallowford supplier.
Required:
On December 31, provide the journal entry for Shallowford's contribution to the partnership Rotor to the chart of accounts for the exact wordino of the account titles ONOW journals do not use ines for journal explanations. Every Ave on a journal page is used for debitor credil entries CNOW journals wol automatically indont a credit entry when a credit amount is entered.

Answer 1

Answer:

Date        General Journal                                    Debit          Credit

Dec. 31    Cash                                                       $22,340

               Patent                                                     $92,840

               Accounts receivable                             $34,300

                      Allowance for doubtful accounts                      $2,200

                      Accounts payable                                              $9,010  

                      Holly Shallowford's , Capital                              $138,270

               (To record capital brought in by Shallowford's)