Henri Mikels and Alex jamison are watch repairmen who want to form a partnership and open a jewelry
Henri Mikels and Alex jamison are watch repairmen who want to form a partnership and open a jewelry store. They have an attorney prepare their partnership agreement, which indicates that assets invested in the partnership will be recorded at their fair market value and that liabilities will be assumed at book value.
The assets contributed by each partner and the liabilities assumed by partnership are as follows:
Assets Henri Mikelscash Alex Jamison
Account Receivable $40,000 $ 30,000
Allowance for uncollectible account 52,000 20,000
Supplies 1,000 3,000
Equipment 20,000 10,000
Account Payable 32,000 9,000
Prepare the entry journal form necessary to record the original investment of Mikels and Jamison in the partnership.