Mary Ann Mason operates a sole proprietorship business that sells craft supplies. On January 1, 2019, Mason has agreed to transfer her assets and liabilities to a partnership that will operate The Craft Company. Mason will own a one-third interest in the capital of the partnership. The agreed upon values of assets and liabilities to be transferred are as follows:
Accounts receivable of $2,000 (of which approximately $200 is estimated to be uncollectible)
Merchandise inventory, $4,000
Furniture and fixtures, $6,000
Accounts payable, $1,000
Record the receipt of the assets and liabilities by the partnership on page 1 of a general journal. Om the description.

Question

Mary Ann Mason operates a sole proprietorship business that sells craft supplies. On January 1, 2019, Mason has agreed to transfer her assets and liabilities to a partnership that will operate The Craft Company. Mason will own a one-third interest in the capital of the partnership. The agreed upon values of assets and liabilities to be transferred are as follows:
Accounts receivable of $2,000 (of which approximately $200 is estimated to be uncollectible)
Merchandise inventory, $4,000
Furniture and fixtures, $6,000 
Accounts payable, $1,000
Record the receipt of the assets and liabilities by the partnership on page 1 of a general journal. Om the description.

Quizplus · Accepted Answer

The Answer of Mary Ann Mason operates a sole proprietorship business that sells craft supplies. On January 1, 2019, Mason has agreed to transfer her assets and liabilities to a partnership that will operate The Craft Company. Mason will own a one-third interest in the capital of the partnership. The agreed upon values of assets and liabilities to be transferred are as follows:
Accounts receivable of $2,000 (of which approximately $200 is estimated to be uncollectible)
Merchandise inventory, $4,000
Furniture and fixtures, $6,000 
Accounts payable, $1,000
Record the receipt of the assets and liabilities by the partnership on page 1 of a general journal. Om the description.

Mary Ann Mason Operates a Sole Proprietorship Business That Sells