Question 1

A partner invests into a partnership a building with a $75,000 carrying value and $50,000 fair market value. The related mortgage payable of $15,000 is assumed by the partnership. The journal entry to record the investment in partnership is

Question 2

Partners R and S receive a salary allowance of $13,000 and $27,000, respectively, and share the remainder equally. If the company earned $54,000 during the period, the entry to close the income or loss into their capital accounts is