Accounting for partner contributions, allocating profits and losses to the partners, preparing partnership financial statements Lorena Lally and Allie Raras formed a partnership on March 15, 2014.The partners agreed to contribute equal amounts of capital. Lally contributed her sole proprietor ship's assets and liabilities (credit balances in parentheses) as follows: On March 15, Raras contributed cash in an amount equal to the current market value of Lally's partnership capital. The partners decided that Lally will earn 70% of partnership profits because she will manage the business. Raras agreed to accept 30% of the profits. During the period ended December 31, the partnership earned net income of S74,000. Lally's withdrawals were $42,000, and Raras's withdrawals totaled $22,000. Requirements Journalize the partners' initial contributions. Prepare the partnership balance sheet immediately after its formation on March 15, 2014. Journalize the closing of the Income Summary and partner Withdrawal ac- counts on December 31, 2014