Kathleen Reilly and Ann Wolf decide to form a partnership on August 1. Reilly invested land valued at $100,000, a Building valued at $300,000 and a note payable worth $198,000. Wolf invested $60,000 in cash and $105,000 in equipment in the new partnership. Prepare the journal entries to record the two partners' original investments in the new partnership

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

c.

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