Anita Kroll and Aaron Rogers organize a partnership on January 1. Krolls initial net investment is $60,000,

Question:

Anita Kroll and Aaron Rogers organize a on January 1. Kroll’s initial net investment is $60,000, consisting of cash ($14,000), equipment ($66,000), and a note payable reflecting a bank loan for the new business ($20,000). Rogers’s initial investment is cash of $25,000. These amounts are the values agreed on by both partners. Prepare journal entries to record
(1) Kroll’s investment and
(2) Rogers’s investment.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...