Jo Ringle and Mel LeBlanc formed a parmership on March 15. The partners agreed to invest equal amounts of capital. LeBlanc invested his proprietorship's assets and liabilities (credit balances in parentheses):

On March 15 Ringle invested cash in an amount equal to the current market value of LeBlanc's partnership capital. The partners decided that LeBlanc would earn 70 percent of partnership profits because he would manage the business. Ringle agreed to accept 30 percent of profits. During the period ended December 31 , the partnership earned \(\$ 80,000\). Ringle's drawings were \(\$ 32,000\), and LeBlanc's drawings were \(\$ 36,000\).
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1. Journalize the partners' initial investments.
2. Prepare the partnership balance sheet immediately after its formation on March 15 .
3. Journalize the December 31 entries to close the Income Summary account and the partner drawing accounts.

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Accounts receivable. Allowance for doubtful accounts.. Inventory Prepaid expenses Store equipment.. Accumulated depreciation. Accounts payable............ LeBlanc's Book Value $ 12,000 Current Market Value $ 12,000 (740) (1,360) 43,850 31,220 2,400 2,400 36,700 26,600 (9,200) (-0-) (22,300) (22,300)