Exercise 15-1 John, Jeff, and Jane decided to engage in a real estate venture as a partnership. John invested $85,300 cash and Jeff provided office equipment that is carried on his books at $80,100. The partners agree that the equipment has a fair value of $116,800. There is a $28,700 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 titles and enter 0 for the amounts.) Account Titles and Explanation Credit Cash Equipment Notes Payable John, Capital Jeff, Capital Jane, Capital Debit 85,300 116,800 28,700 57,800 57,800 57,800