On January 1, Kirk, Picard, and Sisko formed S. T. Enterprises, a partnership. The partners contributed:...

On January 1, Kirk, Picard, and Sisko formed S. T. Enterprises, a partnership. The partners contributed: Kirk-Cash $14,000; Picard-Cash $49,000 and Land $62,000; Sisko-Equipment $83,000. They share profits and losses 3:2:1, respectively.

Prepare journal entry:

Expert Solution

Whenever the partnership is started, partners bring in some assets as a Capital Contribution.

Whatever is received by firm becomes the Assets of the firms and are debited. Capital Accounts of partners are credited by thee respective amount of capital contributed by him.

The journal entry would be:

Date	Accounts titles	Debit	Credit
01-Jan	Cash [14000 + 49000]	$ 63,000.00
	Land	$ 62,000.00
	Equipment	$ 83,000.00
	Kirk-Capital		$ 14,000.00 [Cash-14000]
	Picard - Capital		$ 1,11,000.00 [Cash + Land:49000 + 62000]
	Sisko - Capital		$ 83,000.00 [Equipment 83000]
	(partnership started, with capital contributions)

ekkarill92 answered 1 year ago

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