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Pamela Oliver operates a sole proprietorship business that sells golf equipment.

ID: 2418995 • Letter: P

Question

Pamela Oliver operates a sole proprietorship business that sells golf equipment. In 2013, Oliver agrees to transfer her assets and liabilities to a partnership that will operate The Golf Shop. Oliver will own a two-thirds interest in the capital of the partnership. The agreed upon values of assets and liabilities to be transferred follow.

  

  Total Accounts receivable of $115,000 will be transferred and approximately $3,500 of these accounts may be uncollectible.

   

17,000

how do you find Oliver's capital?

Pamela Oliver operates a sole proprietorship business that sells golf equipment. In 2013, Oliver agrees to transfer her assets and liabilities to a partnership that will operate The Golf Shop. Oliver will own a two-thirds interest in the capital of the partnership. The agreed upon values of assets and liabilities to be transferred follow.

Explanation / Answer

Statement showing computations Particulars Amount Accounts Receivable                    115,000.00 Less Uncollectible Debts                        3,500.00 Net Accounts Receivable                    111,500.00 Merchandise Inventory                      91,000.00 Furniture and Fixtures                      33,000.00 Less: Accounts Payable                      17,000.00 Olivers Capital                    218,500.00