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Caroline Meeks and Charlie Fox Decide to Form a Partnership

question 3

Essay

Caroline Meeks and Charlie Fox decide to form a partnership on August 1. Meeks invests the following assets and liabilities in the new partnership:
Market Value
Land $80,000
Building 250,000
Note payable 114,000
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.


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