(SOLVED) Sheena Kennet and Patricia Waters are forming a partnership to


Question Description:

$19

Sheena Kennet and Patricia Waters are forming a partnership to develop a theme park near Carlson City, Florida. Kennet contributes cash of $1,500,000 and land with a current market value of $9,500,000. When Kennet purchased the land in 2013, its cost was $5,500,000. The partnership will assume Kennet’s $2,750,000 note payable on the land. Waters contributes cash of $3,500,000 and equipment with a current market value of $6,000,000.
Requirements
1. Journalize the partnership’s receipt of assets and liabilities from Kennet and from Waters.
2. Compute the partnership’s total assets, total liabilities, and total partners’ equity immediately after organizing.

Answer

$19