Record partner's original investment
Jessica Kimble and Carlos Segura form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Kimble, sole proprietorship:
|
Cash
|
|
$50,000
|
|
Accounts receivable
|
$100,000
|
|
|
Less: Allowance for doubtful accounts
|
5,900
|
94,100
|
|
Land
|
|
180,000
|
|
Equipment
|
$70,000
|
|
|
Less: Accumulated depreciation-equipment
|
43,000
|
27,000
|
|
Total assets
|
|
$351,100
|
|
Accounts payable
|
|
$22,500
|
|
Notes payable
|
|
80,000
|
|
Jessica Kimble, capital
|
|
248,600
|
|
Total liabilities and owner's equity
|
|
$351,100
|
Kimble obtained appraised values for the land and equipment as follows:
|
Land
|
$284,000
|
|
Equipment
|
19,000
|
An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $7,000.
Journalize the partnership's entry for Kimble's investment.