Keel and Wayne are forming a partnership to develop a theme park near Carter City,...
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Keel and Wayne are forming a partnership to develop a theme park near Carter City, Florida. Keel contributes cash of $3,250,000 and land with a current market value of $12,500,000. When Keel purchased the land in 2015, its cost was $6,500,000. The partnership will assume Keel's $4,750,000 note payable on the land. Wayne contributes cash of $5,250,000 and equipment with a current market value of $7,250,000. Read the requirements. Requirement 1. Journalize the partnership's receipt of assets and liabilities from Keel and from Wayne. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) First record the entry for Keel's investment. Accounts and Explanation Credit Date Debit Now record the entry for Wayne's investment. Accounts and Explanation Date Debit Credit Requirement 2. Compute the partnership's total assets, total liabilities, and total partners' equity immediately after organizing. Keel and Wayne Balance Sheet January 1, 201X Assets Liabilities Note Payable Cash Partners' Equity Land Keel, Capital Equipment Wayne, Capital Total Partners' Equity Total Liabilities and Partners' Equity Total Assets
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