Sherlock and Holmes have agreed to form a partnership. Both of them already had

Sherlock and Holmes have agreed to form a partnership. Both of them already had proprietorships, and those assets were going to be combined to form the partnership. The fair value of Sherlock and Holmes' assets and liabilities are listed below. S Contribution H Contribution Cash 5,000 20,000 Inventor 5,000 50,000 Land 60,000 Building30,000 Equipment 10,000 20,000 Liabilities assume -10,000 Net Assets contributed 100,000 90,000   Assuming that Sherlock and Holmes have agreed to have equal equity balances, prepare the journal entry to record the new partnership using bonus and goodwill method