Kathleen Reilly and Ann Wolf Decide to Form a Partnership

Kathleen Reilly and Ann Wolf decide to form a partnership on August 1. Reilly invested the following assets and liabilities in the new partnership: $$\begin{array} { | l | c | c | } \hline & \text { Cost/Book Value } & \text { Market Value } \\\hline \text { Land } & \$ 75,000 & \$ 100,000 \\\hline \text { Building } & \$ 250,000 & \$ 300,000 \\\hline \text { Note Payable } & \$ 198,000 & \$ 198,000 \\\hline\end{array}$$
The note payable is associated with the building and the partnership will assume the responsibility for the loan. Wolf invested $60,000 in cash and $105,000 in new equipment in the new partnership. Prepare the journal entries to record the two partner's original investments in the new partnership.