Charley, Bob, and Al want to form a partnership. Charley contributes $40,000 in cash and $40,000 in receivables Bob contributes machinery which he acquired 2 years ago for $288,000. The partners value it at $160,000. Al contributes $80,000 in inventory. Ilustrate the Accounting Entries in Debit and Credit T format.
Bob sells one half his equity to Dave, receiving cash of $431,405
The partnership decides to admit a new partner. Her name is Lucy and she is to receive an equal share of the business for a cash contibution of $260,000.