Hannah Johnson contributed equipment, inventory, and $53,000 cash to the partnership. The equipment had a book value of $25,000 and a market value of $28,000 . The inventory had a book value of $50,000, but only had a market value of $15,000 due to obsolescence. The partnership also assumed a $12,000 note payable owed by Hannah that was originally used to purchase the equipment. What amount
should be recorded to Hannah's capital account?
a. $96,000
b. $84,000
c. $108,000
d. $116,000
b
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Uniform Supply accepted a $12,800, 90-day, 9% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid? (Assume reversing entries are not made.). (Use 360 days a year.)
A. Debit Cash $13,088; credit Interest Revenue $240; credit Interest Receivable $48; credit Notes Receivable $12,800. B. Debit Cash $13,088; credit Interest Revenue $288; credit Notes Receivable $12,800. C. Debit Cash $13,088; credit Interest Revenue $48; credit Interest Receivable $240; credit Notes Receivable $12,800. D. Debit Cash $13,088; credit Notes Receivable $13,088. E. Debit Notes Receivable $12,800; debit Interest Receivable $288; credit Sales $13,088.