Question

Problem 12-1A Recording partnership formation LO P1 Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The following balance sheet is from Derr's sole proprietorship. The market value of Derr's equipment is $6,100 and the market value of land is $9,100. Balance Sheet Assets Cash Supplies Equipment Accumulated depreciation-Equip. Land Total assets Liabilities Accounts payable Notes payable Total liabilities Equity M. Derr, Capital Total liabilities and equity $ 2,100 4,100 $ 16,500 (13,400) 3,100 5,100 $14,400 $ 5,600 4,200 9,800 4,600 $14,400 Prepare the partnership’s journal entry to record Derr's investment

Answer 1

Ans:

Transaction	General Journal	Debit	credit
	Cash	2100
	Supplies	4100
	Equipment	6100
	Land	9100
	Accounts Payable		5600
	Notes payable		4200
	Mike Derr’s capital (b/F)		11,600
	(To record investment of Derr’s)