Question 4: (30 Points):

Part A: (15 points)

Hassan, Ali, and Reem are forming a partnership. Hassan is transferring $50,000 of cash to the partnership. Ali is transferring land worth $15,000 and a small building worth $80,000. Reem transfers cash of $9,000, accounts receivable of $32,000 and equipment worth $19,000. The partnership expects to collect $29,000 of the accounts receivable.

Instructions: Prepare the journal entries to record each of the partners investments.

Part B:(15 points)

(ABC)s $10 par value common stock is actively traded at a market value of $15 per share. (ABC) issues 5,000 shares to purchase land advertised for sale at $75,000.

Instruction: Journalize the issuance of the stock in acquiring the land.