Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The following balance sheet is from Derr’s sole proprietorship. The market value of Derr’s equipment

Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The following balance sheet is from Derr’s sole proprietorship. The market value of Derr’s equipment is $5,000 and the market value of land is $8,000. Prepare the partnership’s journal entry to record Derr’s investment. Transcribed Image Text: Balance Sheet
Assets
Liabilitles
Cash…
$ 1,000
Accounts payable.
$ 4,500
Supplies..
3,000
Notes payable.
3,100
Equipment…
$11,000
Total liabilities.
7,600
Accumulated depreciation-Equip….
(9,000)
2,000
4,000
$10,000
Equity
M. Derr, Capital…..
Total liabilities and equity.
Land….
2,400
$10,000
Total assets.