Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $50,000 and equipment with a cost of $180,000 and accumulated depreciation of $100,000. The partners agree that the equipment is to be valued at $58,000, that $3,500 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,000 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $21,000 and merchandise inventory of $44,500. The partners agree that the merchandise inventory is to be valued at $48,000. Required:
Journalize the entries to record in the partnership accounts (a) Jesse’s investment and (b) Tim’s investment. Refer to the Chart of Accounts for exact wording of account titles.

                               Jesse's Investment

Journal Entries to record in the Partnership accounts

Account Titles                                         Debit               Credit

Accounts Receivable                              $46,500

($50,000 - $3,500)

Equipment(Agreed Price)                       $58,000  

Allowance for Doubtful Debts                                            $2,000

Jesse Capital Account                                                       $102,500

(Balancing Figure)

                               Tim's Investment

Journal Entries to record in the Partnership accounts  

Account Name                            Debit             Credit

Cash                                             $21,000

Inventory (At Agreed price)        $48,000  

Tim Capital                                                          $69,000

answer; limited pay life;