Kristen Marks and Shelly Sudd decide to form a partnership on August 1. Marks in
ID: 2421363 • Letter: K
Question
Kristen Marks and Shelly Sudd decide to form a partnership on August 1. Marks invests the following assets and liabilities in the new partnership:
The note payable is associated with the building and the partnership will assume responsibility for the loan. Sudd 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
Market Value Land $80,000 Building 250,000 Note payable 114,000Explanation / Answer
Journal Entries Particulars Dr Amt Cr Amt Land A/C Dr 80,000.00 Building A/C Dr 250,000.00 To Note Payable 114,000.00 To Marks Capital 216,000.00 Cash A/C Dr 100,000.00 Equipment A/C dr 95,000.00 To Sudd's Capital 195,000.00
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