High School

Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $356,000 and a $128,000 note payable. Monroe invests $103,000 in cash and equipment that has a market value of $78,000.

For the partnership, the amounts recorded for total assets and for the total partnership capital account are:

Answer :

Total assets for the partnership: $537,000. Total partnership capital account: $409,000. Fontaine's net investment: $228,000. Monroe's net investment: $181,000.


To determine the amounts recorded for total assets and total partnership capital account in the partnership between Fontaine and Monroe, let's break down the investments and their impact on the financials:

1. Fontaine's Investment:

- Building: The market value of the building is $356,000, which becomes the initial value of the building asset recorded on the partnership's balance sheet.

- Note Payable: Fontaine has a $128,000 note payable, which represents a liability of the partnership. This amount will be recorded as a payable on the balance sheet.

2. Monroe's Investment:

- Cash: Monroe invests $103,000 in cash, which becomes part of the partnership's total assets. This amount will be recorded as a cash asset on the balance sheet.

- Equipment: The market value of the equipment is $78,000, and this value will be recorded as an asset on the balance sheet.

Now, let's calculate the total assets and total partnership capital account:

Total Assets:

The total assets of the partnership are the sum of the individual assets contributed by each partner. In this case, we have:

Total Assets = Building + Cash + Equipment

= $356,000 + $103,000 + $78,000

= $537,000

Total Partnership Capital Account:

The partnership capital account represents the net investment of each partner after deducting any liabilities. In this case, we have:

Fontaine's Net Investment = Building - Note Payable

= $356,000 - $128,000

= $228,000

Monroe's Net Investment = Cash + Equipment

= $103,000 + $78,000

= $181,000

Total Partnership Capital Account = Fontaine's Net Investment + Monroe's Net Investment

= $228,000 + $181,000

= $409,000

Therefore, the amounts recorded for the total assets and total partnership capital account are:

Total Assets = $537,000

Total Partnership Capital Account = $409,000

These figures represent the financial position of the partnership based on the investments made by Fontaine and Monroe.

To learn more about net investment click here: brainly.com/question/17330598

#SPJ11