Mary Hartmann, sole proprietor of a hardware business, decides to form a partnership with Ned Isaacs. Marys accounts are as follows:

Book Value Credit Market Value

Cash $ 20,000 $ 20,000

Accounts Receivable (net) 52,000 45,000

Inventory 112,000 125,000

Land 40,000 100,000

Building (net) 300,000 340,000

Accounts Payable $ 25,000 $ 25,000

Mortgage Payable 75,000 75,000

Record the general journal entries to record Marys investment. Ned agrees to contribute $70,000 for a 20% interest. Record the general journal entry to record Neds investment. Hint: the FMV of the existing assets less liabilities before his contribution is $530,000 + $70,000 and he has a 20% interest - $120,000 capital account in partnership net assets.