Combining assets of their separate businesses

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Reference no: EM131811828

Steffi Derr and Leigh Finger form a partnership by combining assets of their separate businesses. Derr contributes the following: cash, $1,000; supplies that cost $2,400; inventory that cost $3,500; and machinery that cost $9,900 along with its accumulated depreciation of $5,000. The partners agree that $2,000 is a good estimate of supplies, that inventory has a market value of $3,000, and that machinery is worth $4,000. Prepare the partnership's journal entry to record Derr's investment.

Reference no: EM131811828

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