Journalize the formation of the partnership

Use the information to the left to journalize the formation of the partnership. Prepare the beginning partnership balance sheet using the template to the right Assume it is now December 31, 2014. Adjust for depreciation for the furniture (7 year life), computer (3 year life) and building (40 year life). c) 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 given the effects of transactions in a) and b). d) Assume it is now December 31, 2014. Adjust for depreciation for the furniture (7 year life), computer (3 year life) and building (40 year life). Show all of your work in the areas below row 50. Fair Value of Items Contributed to Partnership (FMV=Basis) on March 1, 2014 Assets, Liabilities & Equities S P L I T Cash $10,000 $25,000 $25,000 $25,000 $25,000 AR $15,000 $10,000 Inventory $15,000 $15,000 $15,000 Land $60,000 Furniture $30,000 Less: Accumulated Depreciation Computer $5,000 Less: Accumulated Depreciation Building $50,000 Total Assets $85,000 $55,000 $45,000 $90,000 $50,000 AP $15,000 Loan-L $5,000