Question: In that exercise as I calculate the Capital of Jonathan Myers $2,225,

Question

Question: In that exercise as I calculate the Capital of Jonathan Myers $2,225, where does it come from? . Pregunta: ¿En este ejercicio cómo cálculo el Capital de Jonathan Myers, de dónde sale esa cantidad $2,225?

Jonathan Meyers contributes the following items to his newly formed partnership: Cash, $475; Equipment, $1,300; Accounts Payable, $200; and Inventory, $650. Prepare the journal entry to record his contribution on August 1, 2015.

Aug. 1    Cash 475    Inventory 650    Equipment 1,300

Accounts Payable 200

     Jonathan Meyers, Capital 2,225

Explanation / Answer

Answer:

Jonathan Meyers contributed its capital in the form of Cash, Inventory, Equipment, and Accounts Payable.

As Jonathan Meyers brings Accounts Payable to Partnership, this will reduce the Capital.

Therefore Jonathan Meyers Capital = $475 + $650 + $1,300 - $200
Jonathan Meyers Capital = $2,225

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