Partner investments; journal entries. The LP partnership was formed on Ja

Partner investments; journal entries.

The LP partnership was formed on January 1 19X7 by investments from Bill Levy and Marv Parcells. Levy contributed $30000 cash and $80000 of land.
Parcells contributed various assets from a business that he had operated over the past five years. A balance sheet from that business disclosed the
following:

Accounts receivable

27000

Allowance for uncollectibles

(3200)

Equipment

68000

Accumulated depreciation

(24000)

The partners confirmed that the allowance for uncollectible accounts should be decreased by $600. In addition an independent appraisal determined that
fair market values of the land and equipment on January 1 were $125000 and $35000 respectively.

Prepare the journal entries needed to record the investments of Levy and Parcells.