Fontaine and Monroe are forming a partnership. Fontaine invests a building that
ID: 2446827 • Letter: F
Question
Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property. Monroe invests $100,000 in cash and equipment that has a market value of $55,000. For the partnership, the amounts recorded for total assets and for total capital account are:
Total assets $405,000; total capital $330,000
Total assets $350,000; total capital $350,000
Total assets $350,000; total capital $275,000
Total assets $305,000; total capital $230,000
Total assets $405,000; total capital $305,000
Total assets $405,000; total capital $330,000
Total assets $350,000; total capital $350,000
Total assets $350,000; total capital $275,000
Total assets $305,000; total capital $230,000
Total assets $405,000; total capital $305,000
Explanation / Answer
Total assets $405,000; total capital $330,000 Particulars Assets Liabilities Capital Building 250,000.00 75,000.00 175,000.00 Cash 100,000.00 100,000.00 Equipment 55,000.00 55,000.00 Total 405,000.00 75,000.00 330,000.00