21-M Mastery Problem Forming and expanding a partnership Loa, a On May 1 of the current year, Tamra Hamby and Sharunda Massey form a partnership. The partners share in all changes in equity. The partnership assumes the assets and liabilities of Sharunda's nvests cash equal to Sharunda's investment. A general journal and cash receipts journal are given in the Papers. The May 1 fair market value balance sheet for Sharunda's existing business is as follows existing business business. Tamra Massey Specialty Shop Fair Market Value Balance Sheet May 1, 20- ASSETS Current Assets: s 5,028.26 $6,185.36 1,000.00 Accounts Receivable. Less Allowance for Uncollectible Accounts Inventory 5,18536 24,100.00 1050.00 $35,363.62 Plant Assets: 12,600.00 Total Assets LIABILITIES Accounts Payable $25,483.62 OWNER'S EQUITY 22480.00 Sharunda Massey, Capital... Total Liabilities and Owner's Equity Instructions: Journalize the following transactions. Source documents are abbreviated as follows: memorandum, M; receipt, R. Transactions: 1. Accepted assets and liabilities of Sharunda Massey's existing business as an initial investment Aug. 9. Journalized personal sale of equity to new partner, Emma Laws, $14,000.00. Each existing partner has a Oct. 3. Received cash from new partner, Antonio Mckay, for a one-fourth equity in the business, $17250.00 12. Received cash from new partner, Luis Soto, for a one-fth equity in the business, $21,300.00. Each $22.480.00. R2 current equity balance of $21,000.00. M8. Each existing partner has a current equity balance of $17,250.00. R151 . existing partner has a current equity balance of $22,425.00. R158 and M42. Goodwill dstributed evenly among the existing partners Each existing partner has a current equity cash from new partner, Octavia Ruffin, for a one-sixth equity in the business, $28,000.00 balance of $24,800.00. R184 and M48