Loiselle and Randall formed a partnership on March 15, 2024. The partners agreed to contribute equal amounts of capital. Loiselle contributed her sole proprietorship’s assets and liabilities (credit balances in parentheses) as follows:

On March 15, Randall contributed cash in an amount equal to the current market value of Loiselle’s partnership capital. The partners decided that Loiselle will earn 60% of partnership profits because she will manage the business. Randall agreed to accept 40% of the profits. During the period ended December 31, the partnership earned net income of $79,000. Loiselle’s withdrawals were $41,000, and Randall’s withdrawals totaled $29,000.

Requirements
1. Journalize the partners’ initial contributions.
2. Prepare the partnership balance sheet immediately after its formation on March 15, 2024.
3. Journalize the closing of the Income Summary and partner Withdrawal accounts on December 31, 2024.

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Accounts Receivable Merchandise Inventory Prepaid Expenses Store Equipment, Net Accounts Payable Loiselle's Business Book Value $ 12,700 44,000 3,200 44,000 (24,000) Current Market Value $ 10,400 30,000 2,700 24,000 (24,000)