Jill and Sue Decide to Form the JS Partnership Net Accounts

question 143

Essay

Jill and Sue decide to form the JS Partnership.On February 1,2014,they combine their assets except for the land with the following current market values and book values:
$\begin{array}{c}&&&&&&\text {Jill's assets}&&&\text {Sue's assets}\\\end{array}\\\begin{array}{llll}&\text { Book } & \text { Market } & \text { Book } & \text { Market } \\&\text { value } & \text { value } & \text { value } & \text { value }\\\text { Cash }&\$40,000&\$40,000&\$50,000&\$50,000\end{array}$ Net accounts
$\begin{array}{lllll}\text { receivable } & 39,500 & 37,000 & 28,000 & 27,000 \\\text { Inventory } & 69,000 & 75,000 & 55,000 & 72,000 \\\text { Land } & 50,000 & 85,000 & 75,000 & 90,000 \\\text { Equipment } & 80,000 & 70,000 & 90,000 & 75,000\end{array}$ Accumulated
$$\begin{array} { l l l l l } \text { amortization } & 25,000 & - - - & 30,000 & - - - \\\text { Accounts payable } & 28,000 & 28,000 & - - - & - - -\\\text { Notes payable } & - - - - & - - - & 10,000 & 10,000\end{array}$$ Journalize the entries on February 1,2014,to record the partners' initial investments.

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