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Partner investments; journal entries. The LP partnership was formed on January 1, 19X7, by investments from Bill Levy and Marv Parcells. Levy contributed $30,000 cash and $80,000 of land. Parcells contributed cash of $50,000 and equipment with a value of $20,000. a. Prepare the journal entries needed to record the investments of Levy and Parcells. 2. Payroll accounting. Assume that the following tax rates and payroll information pertain to Brookhaven Publishing: • Social Security taxes: 6% on the first $55,000 earned • Medicare taxes: 1.5% on the first $130,000 earned • Federal income taxes withheld from wages: $7,500
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