Entries and Balance Sheet for Partnership On April 1, 2011, Whitney Lang and El Capri form a partnership Lang agrees to invest $15,900 cash and merchandise inventory valued at $42,900. Capri invests certain business assets at valuations agreed spon, transfers business liabilities, and contributes sufficient cash to bring his total capital to $107,000. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow Capri's Ledger Agreed-Upon Accounts Receivable Balance $24,300 Balance $19,700 Allowance for Doutiful Accounts 1,100 1,400 Merchandise Inventory. 28,300 37,900 Equipment 47,700 46,300 Accumulated Depreciation Equipment 15,900 Accounts Payable Notes Payable (current) 8,600 5,200 600 5,200 The partnership agreement includes the following provisions regarding the division of net income interest of 12% on original investments, salary allowances of $47,700 (Lang) and $29,100 (Capri), and the remainder equally Required 3. umalize the entries so record the investments of (1) Lang and (2) Capri in the partnership accounts e aapel forally, o ne amare not at ten an attry, but flats, Apt 1 Cash ACCOUNT Merchandise Inventory Whitney Lang, Capitel Apr 1 Ca Accounts Receiveti Merchandise Inventory Fipment Accounts Paya DEBIT CREDIT Accounts Payable Notes Payable Eli Capri, Capital BE 2. Prepare a balance sheet as of April 1, 20Y1, the date of formation of the partnership of Lang and Capri. Lang and Capri Current assets: Cash Accounts Receivable Less Allowance for Doubtful Accounts Merchandise Inventory Total current assets Property, plant, and equipment: Equipment Total assets Current liabilities: Accounts Payable Notes Payable Total liabilities Balance Sheet April 1, 2011 Assets Liabilities Whitney Lang, Capital Eli Capri, Capital Partners' Equity Total abilities Whitney Lang Capit El Capri Capital Partners' Equity total partners equity Total labetes and partners equity 3. Ar adjustments at March 31, 2012, the end of the first full year of operations, the revenues were $472,000 and expenses were $322,000, for a net income of $150,000 The drawing accounts have debit balances of $53,000 (Lang) and $45.000 (Capr). Journalize the entries to close the revenues and expenses and the drawing accounts at March 31, 2012. For a compound transaction, if an amount bux does not require an entry, leave blank Mar 31 Revenues ACCOUNT DEBIT CREDIT Mar 31 Expenses Whitney Lang Capital Cape, Capital Whitney Lang, Capital Capri Capital whaney Lang, Drawing Cap, Drawing