3 Formatio HH and JR are fashion designers who agreed to form a partnership to open a clothing store. An attorney prepares the 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 80,000 104,000 Assets JR Cash 60,000 40,000 2,500 4,000 1,000 35,000 20,000 (10,000) Accounts receivable Allowance for uncollectible accounts Book value 4,000 6,000 2,000 60,000 40,000 Allowance for uncollectible accounts Fair Value Supplies Equipment Book Value - Fair Value Accumulated depreciation, equipment (15,000) Liabilities Accounts payable 64,000 18,000 Prepare the journal entry to record the investment of each partner separately