4) Accounting for partner contributions, allocating profits and losses to the partners, preparing partnership financial statements Washington and Jacobs formed a partnership on March 15, 2018. The partners agreed to contribute equal amounts of capital. Washington contributed her sole proprietorship's assets and liabilities (credit balances in parentheses) as follows: Washington's Business Current Market Value Book Value $ 10,500 $ 12,200 Accounts Receivable 35,000 42,000 Merchandise Inventory 2,800 3,500 Prepaid Expenses 42,000 23,000 Store Equipment, Net Accounts Payable (26,000) (26,000) On March 15, Jacobs contributed cash in an amount equal to the current market value of Washington's partnership capital. The partners decided that Washington will earn 60% of partnership profits because she will manage the business. Jacobs agreed to accept 40% of the profits. During the period ended December 31, the partnership earned net income of $72,000. Washington's withdrawals were $36,000, and Jacobs's withdrawals totaled $26,000. Requirements 1. Journalize the partners' initial contributions. 2. Prepare the partnership balance sheet immediately after its formation on March 15, 2018. 3. Journalize the closing of the Income Summary and partner Withdrawal accounts on December 31, 2018