Brittany Adams contributed a patent, accounts receivable, and $61,000 cash to a

Question

Brittany Adams contributed a patent, accounts receivable, and $61,000 cash to a partnership. The patent had a book value of $56,000. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised at $240,000. The accounts receivable control account was $78,000, with an allowance for doubtful accounts of $4,000. The partnership also assumed a $15,000 account payable from Adams.

Provide the journal entry for Adam's contribution to the partnership.

Explanation / Answer

USD$

Cash a/c Dr 61000

Accounts receivable a/c Dr 78000

Patents a/c Dr 240000

Adams capital a/c 356000

Allowance for Doubtful debts 4000

Accounts Payable 15000

(Being cash accounts receivable and patent received from adams and a current liabilty payable received from him)

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