Kristen Marks and Shelly Sudd decide to form a partnership on August 1. Marks in

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 114,000

Explanation / Answer

JOurnal Entry for Marks

Journal Entry for SUdd

Particulars Amount ($) Amount($) Land 80000 Building 250000 To Notes PAyable 114000 To Owner's Equity 216000

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