Billy Bob and Junior want to develop a water park in Colorado. On Sept 20, 2021 Billy Bob contributes $2,000,000 cash and land with a current market value of $7,500,000. When Billy Bob purchased the land it cost $5,500,000. The partnership will also take over a Billy Bob's $3,000,000 note payable on the land. Junior contributes $2,000,000 cash and equipment with a current market value of $4,000,000.a) Journalize the partnership's receipt of assets and liabilities from Billy Bob and Junior.b) Compute the partnership's total assets, total liabilities, and equity immediately after organizing. Use cell references. Home InsertS18AutoSave ON4567008910111213141516171819202122232425262728293031323334353637383940414243444546ABCDE1*** All amounts should be calculated using formulas ***2 Problem 1. Accounting for partner contributionsDraw Page LayoutfxReadyCTotal AssetsTotal LiabilitiesTotal EquityProblem 1a) Journalize the partnership's receipt of assets and liabilities from Billy Bob and Junior.Accounts and ExplanationsDate9/20/21CashLandEquipmentNotes PayableBilly Bob, CapitalJunior, CapitalFormulas DataFProblem 2 +GAccessibility: InvestigateReviewBilly Bob and Junior want to develop a water park in Colorado. On Sept 20, 2021 Billy Bob contributes $2,000,000 cash and landwith a current market value of $7,500,000. When Billy Bob purchased the land it cost $5,500,000. The partnership will also takeover a Billy Bob's $3,000,000 note payable on the land. Junior contributes $2,000,000 cash and equipment with a current marketvalue of $4,000,000.H|DebitViewb) Compute the partnership's total assets, total liabilities, and equity immediately after organizing. Use cell references.J4,000,0007,500,0004,000,000Partnership Homework Problems JGilliamAutomateCreditK3,000,000LTell meMNOSaved ✓PQRSTUVOaWIXCommentsY+ZShare100%AA

The journal keeps track of the transactions that transfer year-end net income to partner capital…

Answered: Billy Bob and Junior want to develop a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Billy Bob and Junior want to develop a water park in Colorado. On Sept 20, 2021 Billy Bob contributes $2,000,000 cash and land with a current market value of $7,500,000. When Billy Bob purchased the land it cost $5,500,000. The partnership will also take over a Billy Bob's $3,000,000 note payable on the land. Junior contributes $2,000,000 cash and equipment with a current market value of $4,000,000.

a) Journalize the partnership's receipt of assets and liabilities from Billy Bob and Junior.

b) Compute the partnership's total assets, total liabilities, and equity immediately after organizing. Use cell references.

Home Insert
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*** All amounts should be calculated using formulas ***
2 Problem 1. Accounting for partner contributions
Draw Page Layout
fx
Ready
C
Total Assets
Total Liabilities
Total Equity
Problem 1
a) Journalize the partnership's receipt of assets and liabilities from Billy Bob and Junior.
Accounts and Explanations
Date
9/20/21
Cash
Land
Equipment
Notes Payable
Billy Bob, Capital
Junior, Capital
Formulas Data
F
Problem 2 +
G
Accessibility: Investigate
Review
Billy Bob and Junior want to develop a water park in Colorado. On Sept 20, 2021 Billy Bob contributes $2,000,000 cash and land
with a current market value of $7,500,000. When Billy Bob purchased the land it cost $5,500,000. The partnership will also take
over a Billy Bob's $3,000,000 note payable on the land. Junior contributes $2,000,000 cash and equipment with a current market
value of $4,000,000.
H
|
Debit
View
b) Compute the partnership's total assets, total liabilities, and equity immediately after organizing. Use cell references.
J
4,000,000
7,500,000
4,000,000
Partnership Homework Problems JGilliam
Automate
Credit
K
3,000,000
L
Tell me
M
N
O
Saved ✓
P
Q
R
S
T
U
V
O
a
W
I
X
Comments
Y
+
Z
Share
100%
AA

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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