Caroline Meeks and Charlie Fox decide to form a partnership on August 1.Meeks invests the following assets and liabilities in the new partnership:
$$\begin{array} { l l }
& \text { Market Value } \
\text { Land } & \$ 8 0 , 0 0 0 \
\text { Building }& 2 5 0 , 0 0 0 \
\text { Note payable } & 114,000
\end{array}$$
The note payable is associated with the building and the partnership will assume responsibility for the loan.Fox invested $100,000 in cash and $95,000 in equipment in the new partnership.Prepare the journal entries to record the two partners' original investments in the new partnership.

Question

Caroline Meeks and Charlie Fox decide to form a partnership on August 1.Meeks invests the following assets and liabilities in the new partnership:
 $$\begin{array} { l l } 
 & \text { Market Value } \
\text { Land } &  \$ 8 0 , 0 0 0 \
\text { Building }& 2 5 0 , 0 0 0  \
\text { Note payable } & 114,000
\end{array}$$  
The note payable is associated with the building and the partnership will assume responsibility for the loan.Fox invested $100,000 in cash and $95,000 in equipment in the new partnership.Prepare the journal entries to record the two partners' original investments in the new partnership.

Quizplus · Accepted Answer

The Answer of Caroline Meeks and Charlie Fox decide to form a partnership on August 1.Meeks invests the following assets and liabilities in the new partnership:
 $$\begin{array} { l l } 
 & \text { Market Value } \
\text { Land } &  \$ 8 0 , 0 0 0 \
\text { Building }& 2 5 0 , 0 0 0  \
\text { Note payable } & 114,000
\end{array}$$  
The note payable is associated with the building and the partnership will assume responsibility for the loan.Fox invested $100,000 in cash and $95,000 in equipment in the new partnership.Prepare the journal entries to record the two partners' original investments in the new partnership.

Caroline Meeks and Charlie Fox Decide to Form a Partnership