Question

Rodriguez and Ying start a partnership on July​ 1, 2019. Rodriguez contributes​ $4,100 cash, furniture with a current market value of​ $47,000, accounts payable with a current market value of​ $16,000 and equipment with a current market value of​ $23,000. Which of the following is the correct journal entry to record​ Rodriquez's partnership​ investment?

Answer 1

Step-by-step explanation:

The journal entry is shown below:

Cash A/c Dr $4,100

Equipment A/c Dr $23,000

Furniture A/c Dr $47,000

To Account payable $16,000

To Rodriguez's Capital $58,100

(Being all adjustments are recorded and the remaining balance is credited to Rodriguez's Capital.

Remaining balance is calculated by

= Cash A/c + Equipment A/c + Furniture A/c - Accounts payable

= $4,100 + $23,000 + $47,000 - $16,000

= $74,100 - $16,000

= $58,100