Hanna Hark and Jamie Rice are watch repairmen who want to form a partnership and open a jewelry store. An attorney prepares their partnership agreement, which indicates that assets invested in the partnership will be recorded at their fair market value and that liabilities will be assumed at book value.
The assets contributed by each partner and the liabilities assumed by the partnership follow.

Prepare the journal entries necessary to record the original investments of Hark and Rice in thepartnership.

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Assets Cash Accounts receivable Allowance for uncollectible accounts Supplies Equipment Liabilities Accounts payable Hanna Hark 80,000 104,000 8,000 2,000 40,000 Jamie Rice $60,000 40,000 6,000 1,000 20,000 Total 140,000 144,000 14,000 3,000 60,000 64,000 18,000 82,000