Sabine King and Emerson Wyndon are forming a partnership to

Sabine King and Emerson Wyndon are forming a partnership to develop a theme current market value of $12,500,000. When King purchased the land in 2013, its cost was $8,000,000. The partnership will assume King\'s $4,000,000 note payable or the land. Wyndon contributes cash of $3,000,000 and equipment with a current market value of $9,500,000, Requirements 1. Jounalize the partnership\'s receipt of assets and liabilities from King and from Wyndon 2. Compute the partnership\'s total assets, total liabilities, and totai partners\' equity immediately after organizing park near Cartor City, Florida. King contnibutes cash of $1,000,000 and land with Requirement 1. Jounalize the partnership\'s receipt of assets and iabilities from King and from Wyndon. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table.) First record the entry for Sabine King\'s investment Date Accounts and Explanation Debit Credit

Solution

Date Accounts and Explanation Debit Credit Cash $          4,000,000 Land $        12,500,000 Equipment $          9,500,000 Notes Payable $          4,000,000 Sabine\'s Capital $          9,500,000 Emerson\'s Capital $        12,500,000 Note: Assets and liabilties are recorded at their far market value. Total assets Cash $          4,000,000 Land $        12,500,000 Equipment $          9,500,000 $        26,000,000 Total liabilities Notes Payable $          4,000,000 Capital Sabine\'s Capital $          9,500,000 Emerson\'s Capital $        12,500,000 Total capital $        22,000,000