Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The following balance sheet information is provided by Derr from his sole proprietorship.

Cash			$	1,800		Accounts payable	$	5,300
Supplies				3,800		Notes payable		3,900
Equipment	$	15,000				Total liabilities		9,200
Less: Accumulated depreciationEquip.		12,200		2,800
Land				4,800		M. Derr, Capital		4,000
Total assets			$	13,200		Total liabilities and equity	$	13,200

The new partners obtain appraised values and agree to accept the book values for Derrs assets and liabilities except for the following: Equipment is valued at $5,800, and land is worth $8,800. Required Prepare the partnerships journal entry to record Derrs investment.

Journal entry worksheet

Record investment of Derr.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1