Nancy Fleming has been operating an apartment-locator service as a sole proprietorship. She and Melissa Michaels have decided to form a partnership. Fleming's contribution consists of Cash, $10,000; Accounts Receivable, $14,000; Furniture, $17,000; Building (net), $58,000; and Notes Payable, $19,000

To determine Fleming's equity in the partnership, she and Michaels hire an independent appraiser. The appraiser values all the assets and liabilities at their book value, except the building, which has a current market value of $98,000. Also, there are additional Accounts Payable of $3,000 that Fleming will contribute. Michaels will contribute cash equal to Fleming's equity in the partnership

Read the requirements.

Requirements

1. Journalize the entry on the partnership books to record Fleming's contribution.
2. Journalize the entry on the partnership books to record Michaels's contribution.