Susan Knoll and Emerson Wyndon are forming a partnership to develop a theme park near Carlson City, Florida. Knoll invests cash of $3,000,000 and land valued at $11,000,000. When Knoll purchased the land in 2012, its cost was $9,000,000. The partnership will assume Knoll’s $4,000,000 note payable on the land. Wyndon invests cash of $5,000,000 and equipment worth $6,000,000.
Requirements
1. Journalize the partnership’s receipt of assets and liabilities from Knoll and from Wyndon.
2. Compute the partnership’s total assets, total liabilities, and total owners’ equity immediately after organizing.