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Styles Chapter 14: Partnerships: Formation and Operation Make all necessary Journal Entries for the following examples. Example 1: Accounting for Capital Contributions-Cash Carter and Green form a business to be operated as a partnership. Carter contributes S50,000 in cash and Green invests $20,000 Example 2: Accounting for Capital Contributions-Cash and Tangible assests Carter invests $50,000 cash and Green contributes the following assets: Book Value to Green Fair Value Inventory S 9,000 14.000 32.000 S 55.000 $10,000 11,000 46,000 567,000 Land Building Total Green building is encumbered by a S23,600 mortgage that the partnership has agreed to assume. Example 3: Intangible Contributions James and Joyce plan to open an advertising agency and decide to organize the endeavor as a partnership. James contributes cash of $70,000, and Joyce invests only $10,000. Joyce is an accomplished graphic artist. Agree to share profit and loss equally (50 50). Bonus Method: Goodwill Method