Prepare entries on partnership books to record investment


Response to the following problem:

Vivien Monteros has been operating an apartment-locater service as a proprietorship. She and Barrett Schraeder have decided to reorganize the business as a partnership. Monteros's investment in the partnership consists of cash, $8,000; accounts receivable, $10,600; office furniture, $1,600; a small building, $55,000; accounts payable, $3,300; and a note payable to the bank, $10,000.

To determine Monteros's equity in the partnership, she and Schraeder hire an independent appraiser. The appraiser values all the assets and liabilities at their book value except the building, which has a current market value of $71,000. Also there are accrued expenses payable of $1,200.

Required:

Make the entry on the partnership books to record Monteros's investment.

 

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Accounting Basics: Prepare entries on partnership books to record investment
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