Problem
Suzy Robinson has owned and operated a proprietorship for several years. On January 1, she decides to terminate this business and become a partner in the firm of Robinson and Garcia. Robinson's investment in the partnership consists of $12,480 in cash and the following assets of the proprietorship: accounts receivable $14,560 less allowance for doubtful accounts of $2,080, and equipment $31,200 less accumulated depreciation of $4,160. It is agreed that the allowance for doubtful accounts should be $3,120 for the partnership. The fair value of the equipment is $24,440.
Journalize Robinson's admission to the firm of Robinson and Garcia.