ACC1200-SU2018 Submit Quiz Quiz: HW2 CH12 This Question: 1 pt 4 of 32 This Quiz:

Question

ACC1200-SU2018 Submit Quiz Quiz: HW2 CH12 This Question: 1 pt 4 of 32 This Quiz: 32 pts possible 7. Stevie Lewis and Mack Young are forming a partnership to develop a golf course. Lewis contributes cash of $1,000,000 and land with a current market value of $10,000,000. When Lewis purchased the land in 2012, it cost $7,000,000. Young contributes cash of $3,000,000 and equipment with a current market value of $800,000. Jourmalize the partnership's receipt of assets from Lewis and Young. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by journalizing the partnership's receipt of assets from Lewis. Debit Date Accounts and Explanation Credit Now journalize the partnership's receipt of assets from Young. Date Accounts and Explanation Debit Credit Choose from any list or enter any number in the input fields and then continue to the next questic ? Save for Later

Explanation / Answer

Solution:

Journal Entries - Lewis and Young Event Particulars Debit Credit 1 Lewis's Invesment Cash Dr $1,000,000.00 Land Dr $10,000,000.00      To Lewis's Capital $11,000,000.00 (To record Lewis contribution in partnership) 2 Young's Investment Cash Dr $3,000,000.00 Equipment Dr $800,000.00      To Young's Capital $3,800,000.00 (To record Young contribution in partnership)

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