Flaherty, P

question 1

Essay

Flaherty, P. Denny, and G. Newman are forming a partnership. Flaherty is transferring $75,000 of personal cash to the partnership. Denny owns land worth $22,000 and a small building worth $120,000, which she transfers to the partnership. Newman transfers to the partnership cash of $14,000, accounts receivable of $48,000 and equipment worth $28,000. The partnership expects to collect $43,000 of the accounts receivable.
Instructions
(a) Prepare the journal entries to record each of the partners' investments.
(b) What amount would be reported as total owners' equity immediately after the investments?

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Definitions:

Elaborative Rehearsal

A method of memory enhancement which involves thinking about the meaning of the term to be remembered, as opposed to rote repetition.

Persistence

The quality of continuing steadily despite problems, obstacles, or discouragement.

Mnemonic Device

A tool that aids in remembering information, often by using a pattern of letters, ideas, or associations to facilitate retrieval of information from memory.

Manageable Size

Describes a quantity, volume, or dimension that can be effectively handled, controlled, or dealt with by available resources or within given constraints.