CLOYPARTNERSHIP YEAR 2020 On January 2020, Ri and Se-ri agreed to combine their skills and capital and form a partnership. Ri contributed P20,000 Cash, Merchandise with a book value of P12,000 and a fair value of P10,000 and Equipment with a net book value of P32,000 and fair value of P20,000. Se-ti gave P15,000 Cash and Merchandise with a book value of P24,000 and a fair value of P15,000. All transactions of CLOY are cash basis. On December 31,2020 before the books are closed, the drawing accounts of Ri shows a debit balance of P7,000 and for Se-ri, debit balance of P6,000. The balances of the drawing accounts are closed to capital accounts. The partnership agreement with regards to division of profits and losses provides that each partner is - To be allowed an annual salary of P10,000 each - Ri is to receive 65% and Se-ri 35% of the balance after allowance of salaries. The partnership has the following information bringing the income summary balance account a credit of P28,000 before any entry for the allowance of salaries and this balance is closed directly to the oartner's caoital account. YEAR 2021 On January 2, 2021, Seo-Dan is admitted as a partner upon the investment of P40,000 in the firm, Ri and Se-ri sharing in the ratio 65135 gave a bonus to Se0-Dan so that she may have a 40% interest in the firm. The new agreement provides that profits and losses are to be distributed as followst Ri, 35% i Se-ti, 25% and Se0-Dan, 40%, Salaries are not allowed. On December 31, 2020, the partners' drawing account have debt balances as followsi: Ri, P4, 9001 Se-ri, P3,900 and Seo-Dan, P4,200. The income summary account has a debit balance of P12,000. Accounts are closed. YEAR 2022 On sanuary 1, 2022, the partners decide to liquidate. The assets are realized on a lump sum basis. Cash realized from the sale of non-cash assets is P50,000. Partners Ri \& Se-ti are solvent partners while partner Seo-Dan is insolvent. Requiredi 1. Prepare the journal entry to record the initial investment of the partnership. ( 5 points) 2. Prepare the Statement of Changes in Partner's Equity for Years 2020s.2021. ( 5 points) 3. Prepare the journal entry to record the admission of Se0-Dan. (5 points) 4. Prepare the Statement of Liquidation in 2022. (5 points)