1. Perform all operational journal entries and transactions after partnership formation from the following: ...
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Accounting
1. Perform all operational journal entries and transactions after partnership formation from the following:
Fair Value of Items Contributed to Partnership (FMV Basis) on March 1, 2014 Assets, Liabilities & Equities Cash AR Inventory Land Furniture Less: Accumulated Depreciation Computer Less: Accumulated Depreciation Building $10,000 $25,000 $25,000 $25,000$25,000 $15,000 $10,000 $15,000$15,000 $15,000 $60,000 $30,000 $5,000 $50,000 Total Assets AP Loan-L $85,000$55,000 $45,000$90,000$50,000 $0 $0 $0$15,000 $0 $0 $0 $0 So $5,000 Assume it is now December 31, 2014. Adjust for depreciation for the furniture (7 year life), computer Account DR CR In addition to the depreciation expenses there are $10,000 of operations expenses all paid in cash. There was also operational revenue of $20,000 (also paid in cash). Prepare the partnership balance sheet as of December 31, 2014 also given the effects of transactions in a) and b) Income Statement for SPLIT for the Year Ended December 31, 2014 $20,000 Operational Revenue Depreciation Expense* Other Operational Expenses Net Income $10,000 Use amount from adjusting entry and calculate net income
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