K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferri
ID: 2603094 • Letter: K
Question
K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $45,000 of personal cash to the partnership. Rosen owns land worth $10,000 and a small building worth $75,000, which she transfers to the partnership. Toso transfers to the partnership cash of $10,000, accounts recevable of $27,000 and equipment worth $14,000. The partnership expects to collect $24,300 of the accounts receivable. Prepare the journal entries to record each of the partners' investments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record investment of Decker.) (To record investment of Rosen.) (To record investment of Toso.)Explanation / Answer
a Debit Credit Cash 45000 Decker, Capital 45000 (to Record investment of decker) b Land 10000 Building 75000 Rosen, Capital 85000 (to Record investment of Rosen) c Cash 10000 Accounts Receivable 27000 Equipment 14000 Allowance for Doubtful Accounts. 2700 Toso, Capital 48300 (to Record investment ofToso, Capital) Total owners Equity =45000+85000+48300 178300
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