MacBook Air ACCOUNTING FOR PARTNERS' EQUITY Chapter 14 Problem 1. Accounting for Partners' Equity delete Mr. Long (L) and Ms. Money (M) have decided to form the LM Partnership by combining the assets and liabilities of their individual companies. The book value and fair market value of the assets contributed and the liabilities assumed are as follows: Fair Market Values Long M oney 20,000 10,000 Value Recorded by the LM Partnership Long Money Totals return Cash Book Values Long Money 20,000 10,000 30.000 42,000 25,000 30,000 5,000 10,000 shift Acets Receivable Equipment Acets Payable Partners' Equity 27.000 20.000 5,000 40,000 40.000 10,000 Control Instructions (a) Complete the chart above and use the information to prepare the journal entry to record the formation of the partnership (b) Post the above journal entries to the general ledger listed below. Aseats Liabilis Cash Accounts Payable Partners' Equity Long Capital Accounts Receivable Money Capital 119