Trevor Smith contributed equipment, inventory, and $54,000 cash to a partnership. The equipment had a book value of $30,000 and a market value of $36,000. The inventory had a book value of $60,000, but only had a market value of $20,000, due to obsolescence. The partnership also assumed a $17,000 note payable owed by Smith that was used originally to purchase the equipment.Provide the journal entry for Smith's contribution to the partnership.

Question

Trevor Smith contributed equipment, inventory, and $54,000 cash to a partnership. The equipment had a book value of $30,000 and a market value of $36,000. The inventory had a book value of $60,000, but only had a market value of $20,000, due to obsolescence. The partnership also assumed a $17,000 note payable owed by Smith that was used originally to purchase the equipment.​Provide the journal entry for Smith's contribution to the partnership.

Mariajose Arango · Accepted Answer

Final Answer :   Cash  54 , 000  Inventory  20 , 000  Equipment  36 , 000  Notes Payable  17 , 000  Trevor Smith, Capital  93 , 000 \begin{array}{ll}	ext { Cash }  &  54,000 \	ext { Inventory }  &  20,000 \	ext { Equipment }  &  36,000\	ext { Notes Payable }  &  17,000 \	ext { Trevor Smith, Capital }  &  93,000\end{array}  Cash   Inventory   Equipment   Notes Payable   Trevor Smith, Capital  ​ 54 , 000 20 , 000 36 , 000 17 , 000 93 , 000 ​

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