EX 12-2 Record partner’s original investment
Jessica Kimble and Carlos Segura form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Kimble, sole proprietorship:

Cash $ 50,000 Accounts receivable $100,000 Less: Allowance for doubtful accounts 5,900 94,100 Land 180,000 Equipment $ 70,000 Less: Accumulated depreciation—equipment 43,000 27,000 Total assets $351,100 Accounts payable $ 22,500 Notes payable 80,000 Jessica Kimble, capital 248,600 Total liabilities and owner’s equity $351,100 Kimble obtained appraised values for the land and equipment as follows:
Land $284,000 Equipment 19,000
An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $7,000. Journalize the partnership’s entry for Kimble’s investment.
Answer:

Cash ..................................................................................... 50,000 Accounts Receivable.......................................................... 100,000 Land...................................................................................... 284,000 Equipment............................................................................ 19,000 Allowance for Doubtful Accounts ................................ 7,000 Accounts Payable.......................................................... 22,500 Notes Payable................................................................ 80,000 Jessica Kimble, Capital................................................. 343,500

Cash $ 50,000 Accounts receivable $100,000 Less: Allowance for doubtful accounts 5,900 94,100 Land 180,000 Equipment $ 70,000 Less: Accumulated depreciation—equipment 43,000 27,000 Total assets $351,100 Accounts payable $ 22,500 Notes payable 80,000 Jessica Kimble, capital 248,600 Total liabilities and owner’s equity $351,100 Kimble obtained appraised values for the land and equipment as follows:
Land $284,000 Equipment 19,000
An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $7,000. Journalize the partnership’s entry for Kimble’s investment.
Answer:

Cash ..................................................................................... 50,000 Accounts Receivable.......................................................... 100,000 Land...................................................................................... 284,000 Equipment............................................................................ 19,000 Allowance for Doubtful Accounts ................................ 7,000 Accounts Payable.......................................................... 22,500 Notes Payable................................................................ 80,000 Jessica Kimble, Capital................................................. 343,500