Document Preview: Question:
Prepare the beginning partnership balance sheet using the template below (called SPLIT partnership):
Balance Sheet for SPLIT as of March 1, 2014AssetsCashARInventoryLandFurnitureLess: Accumulated DepreciationComputerLess: Accumulated DepreciationBuilding   Total AssetsLiabilitiesAPLoan-LEquityCapital-SCapital-PCapital-LCapital-ICapital-T  Total Equity and LiabilitiesInformation is as follows :
Fair Value of Items Contributed to Partnership (FMV=Basis) on March 1, 2014Assets, Liabilities & EquitiesSPLITCash$10,000$25,000$25,000$25,000$25,000AR$15,000$10,000Inventory$15,000$15,000$15,000Land$60,000Furniture$30,000Less: Accumulated DepreciationComputer$5,000Less: Accumulated DepreciationBuilding$50,000Â Â Â Total Assets$85,000$55,000$45,000$90,000$50,000AP$0$0$15,000$0$0Loan-L$0$5,000$0$0$0
Solution:
In order to find the capital contribution of each partner we have done the below calculations
Given:
Assets, Liabilities & EquitiesSPLITCash$10,000$25,000$25,000$25,000$25,000AR$15,000$10,000Inventory$15,000$15,000$15,000Land$60,000Furniture$30,000Less: Accumulated DepreciationComputer$5,000Less: Accumulated DepreciationBuilding$50,000Â Â Â Total Assets$85,000$55,000$45,000$90,000$50,000APThis document was truncated here because it was created in the Evaluation Mode.