On December 31, 2014, Dana Davis and Lou Ghai agree to combine their sole proprietorships into a partnership. Their balance sheets on December 31 are shown as follows.

1.Journalize the contributions of Davis and Ghai to the partnership.
2. Prepare the partnership balance sheet at December 31, 2014.

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Davis Business Ghai's Business Book Value Current Market Value Book Value Current Market Value Assets Cash Accounts Receivable Merchandise inventory Plant Assets, Net Total Assets 9,000 9,0006,000 6,000 24,000 43,000 105,00030 14,000 38,000 54,00036,000 114,000 116,000 16,000 26,000 49,000 123,000 38,000 $ 207,000 181,000 Liabilities and Owners Equity Accounts Payable Other Accrued Payables Notes Payable Davis, Capital Ghai, Capital Total Liabilities and Owners Equity 5 24,000 24,000 12,000 12,000 12,000 55.000 116,000 12,000 55,000 102,000 181,000 114,000 116,000