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(Solved): Jack L. and Matthew C. would like to combine businesses to form a partnership. Jack contributes the ...



Jack L. and Matthew C. would like to combine businesses to form a partnership. Jack contributes the following: building, $7,950; Notes payable on the building, $2,150; and inventory, $790. Matthew contributes $1,200 of accounts receivable, which has an allowance for doubtful accounts of $250. Matthew also contributes $970 in cash. Required: Prepare the journal entry to record the contributions, which will occur on August 21, 2019.



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Solution: Journal entry to record the contributions, which will occur on August 21, 2019:
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