Abel contributes $50,000 cash and computer equipment valued at $60,000 and a note payable on the equipment for $40,000; the equipment originally cost $85,000. 

Baker contributes cash of $45,000 and Building that cost $72,000 and a  mortgage on the building of $60,000; the building has a FMV of  $92,000. 

Abel and Baker will shate profits and losses in the ratio of 1:3 ?

REQUIRED:  Record the Journal Entry(s) for the formation of the partnership.  

Answer rating: 100% (QA)

Here are the journal entries for the formation of the partnership Abels contribution of cash Deb... View the full answer