Henri Mikels and Alex Jamison are watch repairmen who want to form a partnership and open a jewelry store. They have an attorney prepare 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.

Assets contributed by each partner and the liabilities assumed by the partnership are as follows:

Prepare the entry in journal form necessary to record original investments of Mikels and Jamison in the partnership.

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Henri Miks Alex Jamison Assets Cash Accounts receivable Allowance for uncollectibie Total $70,000 72,000 $40,000 52,000 $30,000 20,000 accounts Supplies Equipment Liabilities Accounts payable 4,000 1,000 20,000 3,000 500 10,000 7,000 1,500 30,000 32,000 9,000 41,000