Prepare the partnership balance sheet at December $31,2024.$

E$-$F:$12-15$ Accounting for partner contributions

Nancy Fernando has been operating an apartment$-$locator service as a sole proprietorship. She and Melissa Morris have decided to form a partnership. Fernando's contribution consists of Cash, $$10,000$; Accounts Receivable, $$11,000$; Furniture, $$18,000$; Building $($net$),$ $$51,000$; and Notes Payable, $$22,000.$

To determine Fernando's equity in the partnership, she and Morris 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 $$92,000.$ Also, there are additional Accounts Payable of $$3,000$ that Fernando will contribute. Morris will contribute cash equal to Fernando's equity in the partnership.

Requirements

Journalize the entry on the partnership books to record Fernando's contribution.

Journalize the entry on the partnership books to record Morris's contribution.