ACCOUNTING FOR PARTNERSHIPS Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020 they decide to combine their separate businesses which were operated as proprietorships to form M&B Auto Repair, a partnership. Information from their separate balance sheets is presented below: Cash Accounts Receivable Allowance for Doubtful Accounts Accounts Payable Notes Payable Salaries and Wages Payable Equipment Accumulated depreciation- Equipment Marden Auto Repair 10,000 12,000 1,000 5,000 0 1,000 12,000 2,000 Baker Auto Repair 14,000 10,000 500 6,000 3,000 1,500 24,000 4,000 It is agreed that the expected realizable value of Marden's accounts receivable is $11,000 and Baker's receivables is $7,000. The fair value of Marden's equipment is $13,000 and the value of Baker's equipment is $20,000. It is further agreed that the new partnership wil assume all liabilities of the proprietorship with the exception of the notes payable on Baker's balance sheet which he will pay himself. A partnership agreement is signed by both Marden and Baker to consummate this business venture. First year partnership financial operations are: Revenues were $15,000, expenses were $3,400, and Marden and Baker had drawings of $800 and $1,300 respectively. Answer the following questions using the information provided: A) After the formation of M & B Auto Repair, January account balances are cash accounts receivable allowance for doubtful accounts equipment ; accumulated depreciation - equipment_ ; total assets ; accounts payable salaries and wages payable ; notes payable ; total liabilities Marden's Capital Baker's Capital and total equity of Marden's ending capital will be B) After the first year of operations, Marden's share of net income is and Baker will receive and Baker's ending capital is at the end of the first year's operation, C) Assume on 1/1/2021 Bobby invests cash of $29,000 in M&B auto to become the third partner for a 20% interest stake, the capital balances are: Marden is Baker is and Bobby is