Amanda Carcello and Miguel Gaspar form a partnership by combining assets of their former businesses

Amanda Carcello and Miguel Gaspar form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Carcello, sole proprietorship:


















Cash $ 60,000
Accounts receivable $130,000
Less: Allowance for doubtful accounts 7,200 122,800
Land 205,000
Equipment $ 78,000
Less: Accumulated depreciation—equipment 41,000 37,000
Total assets $424,800
Accounts payable $ 24,800
Notes payable 90,000
Amanda Carcello, capital 310,000
Total liabilities and owner’s equity $424,800






Carcello obtained appraised values for the land and equipment as follows:

Land $275,000
Equipment 30,500

An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $8,500.

Journalize the partnership’s entry for Carcello’s investment.


Answer:












Cash 60,000
Accounts Receivable 130,000
Land 275,000
Equipment 30,500
Allowance for Doubtful Accounts 8,500
Accounts Payable 24,800
Notes Payable 90,000
Amanda Carcello, Capital 372,200