Question 1 Not complete Marked out of 10.00 Flag question Formation of partnership Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports the following balance sheet: Cash $14,000 Accounts payable $42.000 Receivables 28,000 Accrued liabilities $28,000 56,000 Total liabilities $70,000 Total assets 598,000 Net assets 528,000 Inventories Partner B is contributing cash of 577,000. The partners agree that the initial capital of the partnership should be shared equally. Prepare the journal entry to record the capital contributions of the partners using both the Bonus Method and the Goodwill Method. Description Credit Bonus Method: Debit Cash Receivables Accounts payable Accrued liabilities Partner 8 Capital Goodwill Method: Cash Receivables Inventories Accounts payable Accrued liabilities Partner A Capital + Check