Ask Question
5 February, 03:29

Brief Exercise 12-1 Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $27,000 cash, and Nichols contributes $18,000 cash and equipment having a book value of $6,300. Prepare the entry to record Nichols's investment in the partnership, assuming the equipment has a fair value of $9,000.

+1
Answers (1)
  1. 5 February, 03:32
    0
    The journal entry is as follows:

    Cash A/c Dr. $18,000

    Equipment (Fair value) A/c Dr. $9,000

    To N's capital $27,000

    (To record the investment bought by Nichols)

    Workings:

    Cash contributed by Nichols = $18,000

    Equipment's Book value = $6,300

    Fair value of equipment = $9000

    Nichols capital = $18,000 + $9,000

    = $27,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Brief Exercise 12-1 Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $27,000 cash, and Nichols ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers