Question: Hannah Freeman and Hugo Hernandez form a
Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship: 
Freeman obtained appraised values for the land and equipment as follows: Land ………………………………….. $320,000 Equipment …………………………….. 34,800 An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $9,500. Journalize the partnership’s entry for Freeman’s investment.
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Hannah Freeman Proprletorship Balance Sheet June 1, 20Y3 Cash $ 65,000 Accounts receivable $125,000 Less: Allowance for doubtful accounts 7,200 117,800 Land 215,000 $ 78,000 Equipment Less: Accumulated depreciation-equipment 41,000 37,000 $434,800 Total assets $ 24,800 Accounts payable Notes payable 76,000 Hannah Freeman, capital Total liabilities and owner's equity 334,000 $434,800
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