Jack and Will Decide to Form the JW Partnership Net Accounts

question 32

Essay

Jack and Will decide to form the JW Partnership.On January 1,2017,they combine their assets with the following current market values and book values:
$\begin{array}{c}&&&&&&\text {Jack's assets}&&&\text {Will's assets}\\\end{array}\\\begin{array}{llll}&\text { Book } & \text { Market } & \text { Book } & \text { Market } \\&\text { value } & \text { value } & \text { value } & \text { value }\\\text { Cash }&\$100,000&\$100,000&\$95,000&\$95,000\end{array}$
Net accounts
$\begin{array}{lllll}\text { receivable } & 39,000 & 37,000 & 28,000 & 23,000 \\\text { Inventory } & 60,000 & 75,000 & 55,000 & 72,000 \\\text { Land } & 50,000 & 80,000 & 75,000 & 90,000 \\\text { Buildings } & 80,000 & 70,000 & 90,000 & 75,000\end{array}$ Accumulated
$\begin{array}{cllll}\text { amortization } & 25,000 & \cdots & 30,000 & \cdots \\\text { Accounts payable } & 18,000 & 18,000 & 25,000 & 25,000\end{array}$ Journalize the entries on January 1,2017,to record the partners' initial investments.

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Definitions:

Hydrogenating

The process of adding hydrogen to a molecule, usually in the presence of a catalyst, to reduce double or triple bonds to single bonds.

Monocyclic Saturated Compound

An organic chemical compound featuring a single cyclic structure without double or triple bonds, indicating all carbons are saturated with hydrogen.

Molecular Formulas

A notation that shows the type and number of atoms in a molecule but not the bonds or arrangement, such as C2H5OH for ethanol.

Elements of Unsaturation

Refers to the presence of double or triple bonds and/or rings in a compound, which reduce the total number of hydrogen atoms the compound can contain.