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Exercise 15-1 John, Jeff, and Jane decided to engage in a real estate venture as a partnership. John invested $106,500 cash and Jeff provided office

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Exercise 15-1 John, Jeff, and Jane decided to engage in a real estate venture as a partnership. John invested $106,500 cash and Jeff provided office equipment that is carried on his books at $79,400. The partners agree that the equipment has a fair value of $110,300. There is a $30,200 note payable remaining on the equipment to be assumed by the partnership. Although Jane has no physical assets to invest in the partnership, both John and Jeff believe that her experience as a real estate appraiser is a valuable skill needed by the partnership and is a basis for granting her a capital interest in the partnership. Assuming that each partner is to receive an equal capital interest in the partnership, (a) Your answer is correct. Record the partnership formation under the bonus method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter o for the amounts.) Account Titles and Explanation Debit Credit 106500 Cash E Equipment 110300 Notes Payable 30200 John, Capital 62200 62200 Jeff, Capital . Jane, Capital 62200 SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 1 of 5 used BACK NEXT Jeff, Capital 62200 Jane, Capital 62200 SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 1 of 5 used (b) Record the partnership formation under the goodwill method, and assume a total goodwill of $98,700. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Cash 106500 Equipment 110300 Goodwill Notes Payable 30200 John, Capital Jeff, Capital Jane, Capital SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 0 of 5 used SAVE POR LATER SUBMIT

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