Problem IV: On January 1, 2021 Barr and Sessions decided to form a partnership called BS Associates. Barr contributed Cash $75,000; Equipment which originally cost $30,000 and accumulated depreciation of $16,000 and whose market value that date was $9,000; and Accounts Payable of $5,000. Sessions contributed Cash $40,000; and land purchased for $100,000 ten years ago but is now worth $280,000. There is also a mortgage of $50,000 on the land.

Required: Make the journal entries for the formation of the partnership on 1/1/20.