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26 October, 06:47

Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $334,000; the partnership assumes responsibility for a $117,000 note secured by a mortgage on the property. Monroe invests $92,000 in cash and equipment that has a market value of $67,000. For the partnership, the amounts recorded for the building and for Fontaine's Capital account are:

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  1. 26 October, 07:12
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    Building = $334,000

    Fontaine's capital account = $217,000

    Explanation:

    From the question above

    Fountain company and Monroe company come together to form a partnership.

    Fontaine invests a building that has a market value of $334,000

    The partnership takes charge for a $117,000 note secured by a mortgage on the building

    Monroe invests $92,000 on cash and equipments

    The cash and equipments has a market value of $67,000

    Therefore the amount recorded for the building is $334,000

    The amount recorded for Fontaine's capital account is

    = $334,000-$117,000

    = $217,000

    Hence for the partnership the amounts recorded for the building and fontaine's capital account is $334,000 and $217,000 respectively.
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