Shawna Kearn and Todd White are forming a partnership to develop a theme park near Bay City, Florida. Kearn contributes cash of $1,000,000 and land with a current market value of $13,500,000. When Kearn purchased the land in 2013, its cost was $7,500,000. The partnership will assume Kearn's $3,000,000 note payable on the land. White contributes cash of $3,000,000 and equipment with a current market value of Requirements 1. Journalize the partnership's receipt of assets and liabilities from Kearn and from White. 2. Compute the partnership's total assets, total liabilities, and total partners' equity immediately after organizing. Sable Kurt and Todd White are forming a partnership to develop a theme park near Bay City, Florida. Kurtcontributes cash of $4,000,000 and land with a current market value of $13,500,000 When Kurt purchased theland in 2013, its cost was $7,500,000. The partnership will assume Kurt's $4,750,000 note payable on the land.White contributes cash of $6,000,000 and equipment with a current market value of $7,500,000Requirements1. Journalize the partnership's receipt of assets and liabilities from Kurt and from White2. Compute the partnership's total assets, total liabilities, and total partners' equity immediately after organizingRequirement 1. Journalize the partnership's receipt of assets and liabilities from Kurt and from White (Recorddebits first, then credits. Select the explanation on the last line of the journal entry table

The objective of the question is to journalize the partnership's receipt of assets and liabilities…

Answered: Sable Kurt and Todd White are forming 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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Shawna Kearn and Todd White are forming a partnership to develop a theme park near Bay City, Florida. Kearn contributes cash of $1,000,000 and land with a current market value of $13,500,000. When Kearn purchased the land in 2013, its cost was $7,500,000. The partnership will assume Kearn's $3,000,000 note payable on the land. White contributes cash of $3,000,000 and equipment with a current market value of Requirements 1. Journalize the partnership's receipt of assets and liabilities from Kearn and from White. 2. Compute the partnership's total assets, total liabilities, and total partners' equity immediately after organizing.

Sable Kurt and Todd White are forming a partnership to develop a theme park near Bay City, Florida. Kurt
contributes cash of $4,000,000 and land with a current market value of $13,500,000 When Kurt purchased the
land in 2013, its cost was $7,500,000. The partnership will assume Kurt's $4,750,000 note payable on the land.
White contributes cash of $6,000,000 and equipment with a current market value of $7,500,000
Requirements
1. Journalize the partnership's receipt of assets and liabilities from Kurt and from White
2. Compute the partnership's total assets, total liabilities, and total partners' equity immediately after organizing
Requirement 1. Journalize the partnership's receipt of assets and liabilities from Kurt and from White (Record
debits first, then credits. Select the explanation on the last line of the journal entry table

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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