On December 31, 2016, Dana Darrius and Lou Gardner agree to combine their sole proprietorships into a partnership. Their balance sheets on December 31 are shown as follows.

Requirements
1. Journalize the contributions of Darrius and Gardner to the partnership.
2. Prepare the partnership balance sheet at December 31, 2016.

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Darrius's Business Gardner's Business Book Value Current Market Value Book Value Current Market Value Assets Cash Accounts Receivable Merchandise Inventory Plant Assets, Net Total Assets S10,000 10,000 19,000 49,000 106,000 S184,000 21,000 55,000 124,000 S 210,000 $ 9,000 7,000 32,000 49,000 97,000 $ 9,000 5,000 32,000 53,000 99,000 Liabilities and Owner's Equity Accounts Payable Other Accrued Payables Notes Payable Darrius, Capital Gardner, Capital Total Liabilities and Owner's Equity $ 30,000 12,000 54,000 114,000 30,000 12,000 54,000 17,000 $17,000 80,000 210,000 $184,000 97,000 99,000