Janice Partington has operated a management consulting business as a proprietorship. She and Alison Morse have decided to reorganize the business as a partnership, effective April 1. Partington's investment in the partnership consists of cash, $88,000; accounts receivable, $50,000 less allowance for un-collectibles, $4,000; office furniture, $14,000 less accumulated amortization, $4,000; a small building, $242,000 less accumulated amortization, $120,000; accounts payable, $18,000; and a note payable to the bank, $44,000.
To determine Partington's equity in the partnership, she and Morse hire an independent appraiser. This outside party provides the following market values of the assets and liabilities that Partington is contributing to the business: cash, accounts receivable, office furniture, accounts payable, and note payable-the same as Partington's book value; allowance for uncollectible accounts, $12,000; building, $310,000; and accrued expenses payable (including interest on the note payable), $8,000.
Required
Make the entry on the partnership books to record Partington's investment.