Cheng and Morales, two recent graduates of Upper State University, formed a computer consulting firm. Cheng contributed an extensive, up$-$to$-$date computer installation, valued at $$60,000.$ This equipment had been financed by a bank loan; the partnership assumed the current balance of $$25,000.$Morales had recently inherited a small office building, valued at $$150,000$ and encumbered by a mortgage debt of $$35,000.$ Morales transferred both the building and the debt to the partnership. Cheng$$s extensive computer skills coupled with Morales$$ sales and customer service skills suggest a profitable future for the firm. They agreed to share profits in the ratio of $40$ percent for Cheng and $60$ percent for Morales, in part because of Morales$$ larger investment.

Required

Compute the balance in each partner$$s capital account and record the partnership formation entry if the: Partners agree that each is to have a $50\%$ interest in partnership capital, and they specifiy the goodwill approach to recording information. $(****$ PLEASE SHOW ALL WORKING NOTES. THE ANSWERS ARE GW$=80,000,$ CAP CHENG $115,000,$ CAP MORALES $115,000.$ PLEASE SHOW ME HOW TO GET THESE ANSWERS$)$