Question

Austin Fisher contributed land, inventory, and $34,000 cash to a partnership. The land had a book value of $70,000 and a market value of $127,000. The inventory had a book value of $62,000 and a market value of $57,700. The partnership also assumed a $50,000 note payable owed by Fisher that was used originally to purchase the land. Provide the journal entry for Fisher.

Answer 1

The journal entry will be as follows;

Step-by-step explanation:

Cash Dr.$34,000

Land Dr.$127,000

Inventory Dr.$57,700

Note Payable Cr.$50,000

Capital-Fisher Cr.$168,700

With contribution of assets net off of note payable by partnership,the fisher capital will be recorded in partnership.