Answer Happy

Recording Partner's Original Investment Vanessa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate businesses. Kaiser contributes the following assets to the partnership: cash, $21,440; accounts receivable with a face amount of $225,120 and an allowance for doubtful accounts of $8,130; merchandise inventory with a cost of $94,720; and equipment with a cost of $177,860 and accumulated depreciation of $115,610. The partners agree that $9,910 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $16,880 is a reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inventory is to be recorded at the current market price of $89,040, and that the equipment is to be valued at $78,440. Journalize the partnership's entry to record Kaiser's investment. If an amount box does not require an entry, leave it blank. Cash Accounts Receivable Merchandise Inventory Equipment ✓ Allowance for Doubtful Accounts Vanessa Kaiser, Capital