Show necessary journal entries to record the investment

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Slim and Jim agreed to start a partnership business by bringing in required assets. Their profit and loss sharing ratios were agreed at 4:3:3. Other provisions were as follows:

a. Slim was to contribute cash of $28,000 and furniture displays worth $37,000 which had a fair market value of $40,000.

b. Jim was to invest $40,000 in cash and $30,000 worth of equipment. Related to the equipment was a note payable of $10,000 which the partnership firm agreed to assume as a liability of the firm.

Required:

Problem 1: Show necessary journal entries to record the investment of the partners

Reference no: EM132820664

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