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Thomas and Aggy decide to form a partnership on August 1. Thomas invests the following assets and liabilities in the new partnership: Market Value Land

Thomas and Aggy decide to form a partnership on August 1. Thomas invests the following assets and liabilities in the new partnership:

Market Value

Land

$200,000

Building

350,000

Note payable

175,000

The note payable is associated with the building and the partnership will assume responsibility for the loan. Aggy invested $120,000 in cash and $195,000 in equipment in the new partnership. Prepare the journal entries to record the two partners' original investments in the new partnership.

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