Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The following

Question:

Mike Derr and Mark Finger form a by combining assets of their separate businesses. The following information is provided by Derr from his sole proprietorship.

Mike Derr and Mark Finger form a partnership by combining

The new partners obtain appraised values and agree to accept the book values for Derr's assets and liabilities except for the following: Equipment is valued at $5,000, and land is worth $8,000.
Required
Prepare the partnership's journal entry to record Derr's investment.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...