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    Alpha and Beta formed Sun Internet Café and each contributed capital to the partnership on January 1st. Alpha contributed $300,000 in cash and $120,000 for equipment, totaling $420,000. Beta contributed $300,000 in cash and $100,000 for furniture and fixtures, totaling $400,000. They also took out a $20,000 mortgage.

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    accounting for partnership formation(summary)

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    Alpha and Beta formed Sun Internet Café and each contributed capital to the partnership on January 1st. Alpha contributed $300,000 in cash and $120,000 for equipment, totaling $420,000. Beta contributed $300,000 in cash and $100,000 for furniture and fixtures, totaling $400,000. They also took out a $20,000 mortgage.

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    © All Rights Reserved
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    9 views2 pages

    Partnership Formation

    Uploaded by

    No Notreally
    Alpha and Beta formed Sun Internet Café and each contributed capital to the partnership on January 1st. Alpha contributed $300,000 in cash and $120,000 for equipment, totaling $420,000. Beta contributed $300,000 in cash and $100,000 for furniture and fixtures, totaling $400,000. They also took out a $20,000 mortgage.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    PARTNERSHIP FORMATION

    A. Alpha and Beta formed Sun Internet Café and the following transactions took place:

    Date Account Titles Debit Credit


    Jan. 1 Cash 300,000
    Alpha, Capital 300,000

    Cash 300,000
    Beta, Capital 300,000

    Mar. 1 Cash 150,000


    Alpha, Capital 150,000

    Aug. 1 Cash 150,000


    Beta, Capital 150,000

    B. Alpha and Beta formed Sun Internet Café and the following transactions took place:

    Date Account Titles Debit Credit

    Jan. 1 Cash 300,000


    Equipment 150,000
    Alpha, Capital 450,000

    Cash 300,000
    Furniture and Fixtures 150,000
    Beta, Capital 450,000

    C. Alpha and Beta formed Sun Internet Café and the following transactions took place:

    Date Account Titles Debit Credit

    Jan. 1 Cash 300,000


    Equipment 120,000
    Alpha, Capital 420,000

    Cash 300,000
    Furniture and Fixtures 100,000
    Beta, Capital 400,000

    D. Alpha and Beta formed Sun Internet Café and the following transactions took place:
    Date Account Titles Debit Credit

    Jan. 1 Cash 300,000


    Equipment 120,000
    Alpha, Capital 420,000

    Cash 300,000
    Furniture and Fixtures 100,000
    Beta, Capital 400,000

    E. Alpha and Beta formed Sun Internet Café and the following transactions took place:

    Date Account Titles Debit Credit

    Jan. 1 Cash 300,000


    Equipment 120,000
    Mortgage Payable 20,000
    Alpha, Capital 400,000

    Cash 300,000
    Furniture and Fixtures 100,000
    Beta, Capital 400,000

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