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Answer in Accounting for Jenelle #103366

Author:
March 17th, 2023

Contributions of founders to the authorized capital:

By Yissachar:

1.Debit Cash Credit settlements with retainers :$50,000

2.Debit Accounts Receivable Credit settlements with retainers: $80,000.

3.Debit Accumulated depreciation – Equipment Credit Equipment: $20,000

4.Debit Allowance for Doubtful Accounts Credit Accounts Receivable: $4,000

5.Debit equipment Credit settlements with retainers: $45,000.

By Zevulun:

  1. Debit Cash Credit settlements with retainers :$75,000
  2. Debit truck Credit settlements with retainers :$5,000

Formed authorized capital:

Debit settlements with retainers Credit authorized capital: $255,000

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