Alison Smith, Jim Jackson and Lucy Zhang formed a partnership on January 1, 2020, by contributing the following assets:

Smith:	$200,000 in cash
Jackson:	$50,000 in cash and inventory (cost of $90,000, fair value of $80,000)
Zhang:	$30,000 in cash and store equipment (net book value of $70,000, fair value of $95,000)

The partners agreed that as the managing partner, Smith would receive a salary allocation of $60,000 per year. Any remaining partnership profit or losses would be shared using the ratio of 4:3:3 to Smith, Jackson and Zhang, respectively. The net profit of the partnership for the year ended December 31, 2020, was $240,000.

Required:

1. Journalize the formation of the partnership on January 1 and the contribution of the assets noted above.
2. Prepare the entries on December 31 to close the net profit of the partnership to the partners capital accounts. Show your calculations for part marks.