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September 26, 2021
Solved

How to account for personal property being transferred into a sole proprietorship as retail sales inventory?

  • September 26, 2021
  • 1 reply
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Best answer by Rustler

1. determine the current fair market value of each item and then the total of all items

2. make a deposit in the cash account in that amount and use owner equity investment as the source account for the deposit

3. create a vendor called dummy or inhouse

4. Buy each item from the dummy vendor in the qty and total cost needed, use the cash account as the source account for the purchase

1 reply

Rustler
RustlerAnswer
September 27, 2021

1. determine the current fair market value of each item and then the total of all items

2. make a deposit in the cash account in that amount and use owner equity investment as the source account for the deposit

3. create a vendor called dummy or inhouse

4. Buy each item from the dummy vendor in the qty and total cost needed, use the cash account as the source account for the purchase

September 28, 2021

Thank you sir!