Answer:
Step-by-step explanation:
Given that:
Kathleen Reilly and Ann Wolf decide to form a partnership on August 1
NOW:
Reilly invested land valued at $100,000, a Building valued at $300,000 and a note payable worth $198,000.
Similarly:
Wolf invested $60,000 in cash and $105,000 in equipment in the new partnership.
The objective of this question is to prepare the journal entries to record the two partners original investments in the new partnership.
.Since the partners agreed to be equally capital interest in their business.
SO let's an imaginary table for that and our data for the journal entries is being computed as follows:
DATE GENERAL JOURNAL DEBIT CREDIT
August 1 Land $100,000
Building $300,000
Note payable $198,000
Kathleen Reilly, Capital $202,000
August 1 Cash $60,000
Equipment $105,000
Ann Wolf, Capital $165,000