Moss and Barber organize a partnership on January 1. Moss's initial net investment is $75,000, consisting of cash ($17,500), equipment ($82,500), and a note payable reflecting a bank loan for the new business ($25,000). Barber's initial investment is cash of $31,250.

Prepare journal entries to record

(1) Moss's investment and

(2) Barber's investment.

Question

Silly Gilly

Business

25 February, 15:33

Moss and Barber organize a partnership on January 1. Moss's initial net investment is $75,000, consisting of cash ($17,500), equipment ($82,500), and a note payable reflecting a bank loan for the new business ($25,000). Barber's initial investment is cash of $31,250.

Prepare journal entries to record

(1) Moss's investment and

(2) Barber's investment.

+3

Answers (1)

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Tori Gilbert · Answer 1

journal entries are as given below

Explanation:

solution

journal entries are as

first we get here investment by Moss

date account title debit credit

January 01 cash $17500

equipment $82500

note payable $25000

Angela Moss capital $75000

and now we get investment by barber

date account title debit credit

January 01 cash $31250

autumn barber capital $31250