Investments by partners 2. Total assets $56 mil. Exercise 12-3 Jackson Cooke and Julia Bamber are forming a partnership to develop an amusement park near Ottawa. Cooke contributes cash of $3 million and land valued at $30 million. When Cooke purchased the land, its cost was $16 million. The partnership will assume Cooke's $6 million note payable on the land. Bamber invests cash of $15 million and construc- tion equipment that she purchased for $14 million (accumulated amortization to date, $6 million). The equipment's market value is equal to its book value. Required 1. Journalize the partnership's receipt of assets and liabilities from Cooke and from Bamber. Record each asset at its current market value with no entry to accumulated amortization. 2. Compute the partnership's total assets, total liabilities, and total owners' equity imme- diately after organizing.
Investments by partners 2. Total assets $56 mil. Exercise 12-3 Jackson Cooke and Julia Bamber are forming a partnership to develop an amusement park near Ottawa. Cooke contributes cash of $3 million and land valued at $30 million. When Cooke purchased the land, its cost was $16 million. The partnership will assume Cooke's $6 million note payable on the land. Bamber invests cash of $15 million and construc- tion equipment that she purchased for $14 million (accumulated amortization to date, $6 million). The equipment's market value is equal to its book value. Required 1. Journalize the partnership's receipt of assets and liabilities from Cooke and from Bamber. Record each asset at its current market value with no entry to accumulated amortization. 2. Compute the partnership's total assets, total liabilities, and total owners' equity imme- diately after organizing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Investments by partners
2. Total assets $56 mil.
Exercise 12-3
Jackson Cooke and Julia Bamber are forming a partnership to develop an amusement park
near Ottawa. Cooke contributes cash of $3 million and land valued at $30 million. When
Cooke purchased the land, its cost was $16 million. The partnership will assume Cooke's
$6 million note payable on the land. Bamber invests cash of $15 million and construc-
tion equipment that she purchased for $14 million (accumulated amortization to date,
$6 million). The equipment's market value is equal to its book value.
Required
1. Journalize the partnership's receipt of assets and liabilities from Cooke and from Bamber.
Record each asset at its current market value with no entry to accumulated amortization.
2. Compute the partnership's total assets, total liabilities, and total owners' equity imme-
diately after organizing.
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