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Entries and Balance Sheet for Partnership on April 1, 2011, Whitney Lang and Ell Capri form a partnership. Lang agrees to invest $18,900 cash and

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Entries and Balance Sheet for Partnership on April 1, 2011, Whitney Lang and Ell Capri form a partnership. Lang agrees to invest $18,900 cash and merchandise inventory valued at $51,000. Caprt invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring his total capital to $127,000. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow: Capri's Ledger Agreed-Upon Balance Balance $20,900 $23,400 Accounts Receivable 1,300 1,500 33,600 45,000 56,700 Allowance for Doubtful Accounts Merchandise Inventory Equipment Accumulated Depreciation Equipment Accounts Payable Notes Payable (current) 55,000 10,900 10,200 10,200 6,200 6,200 The partnership agreement includes the following provisions regarding the division of net income: Interest of 10% on original investments, salary allowances of $56,700 (Lang) and $34,600 (Capri), and the remainder equally, Renuired Entries and Balance Sheet for Partnership on April 1, 2011, Whitney Lang and Ell Capri form a partnership. Lang agrees to invest $18,900 cash and merchandise inventory valued at $51,000. Caprt invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring his total capital to $127,000. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow: Capri's Ledger Agreed-Upon Balance Balance $20,900 $23,400 Accounts Receivable 1,300 1,500 33,600 45,000 56,700 Allowance for Doubtful Accounts Merchandise Inventory Equipment Accumulated Depreciation Equipment Accounts Payable Notes Payable (current) 55,000 10,900 10,200 10,200 6,200 6,200 The partnership agreement includes the following provisions regarding the division of net income: Interest of 10% on original investments, salary allowances of $56,700 (Lang) and $34,600 (Capri), and the remainder equally, Renuired

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