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Formation of partnership Assume that two individuals agree to form a partnership. Partner A is contributing...

Formation of partnership
Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports the following balance sheet:

Cash $7,500 Accounts payable $22,500
Receivables 15,000 Accrued liabilities 15,000
Inventories 30,000 Total liabilities $37,500
Total assets $52,500 Net assets $15,000

Partner B is contributing cash of $37,500. The partners agree that the initial capital of the partnership should be shared equally. Prepare the journal entry to record the capital contributions of the partners using both the Bonus Method and the Goodwill Method.

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ekkarill92 answered 1 year ago
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