The DELS partnership was formed by combining individual accounting practices on

Question

The DELS partnership was formed by combining individual accounting practices on May 10, 20X1. The initial investments were as follows Current Value Tax Basis Delaney: Cash Building Mortgage payable, assumed by DELS $ 8,600 $ 8,600 60,680 36, 500 33, 200 36, 500 Engstrom: Cash Office furniture Note payable, assumed by DELS 9, 400 23,700 11, 50e 9, 400 18,800 11, 50e Lahey: Cash Computers and printers Note payable, assumed by DELS 13, 300 18, 200 15,900 13, 300 21,600 15,900 Simon: 21,500 8,200 Cash 21, 500 6,208 Library (books and periodicals) Required ·a. Prepare the journal entry to record the initial investments using GAAP accounting. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

a.

b. Delaney Engstrom lahey Simon

Total 25825 11425 18925 27700

Note:- Equally distributed payable to all partners = $15975 [$63900 / 4]

Event General journal Dr Cr 1 Cash 52800 Computers and printers 18200 office furniture 23700 Library 8200 Buildings 60600 To notes payable 27400 To Mortgage payable 36500 To Delaney ,capital 32700 To Engstrom ,capital 21600 To Lahey, capital 15600 To Simon,capital 29700

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