Entries and Balance Sheet for Partnership On April 1, 20Y1, Whitney Lang and Eli Capri form a partnership. Lang agrees to invest $10,300 cash and merchandise inventory valued at $27,800. Capri invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring his total capital to $69,000. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow: Capri's Ledger Agreed-Upon Balance Balance Accounts Receivable $15,800 $12,800 Allowance for Doubtful Accounts 700 900 Merchandise Inventory 18,300 24,500 Equipment 30,900 30,000 Accumulated Depreciation-Equipment 10,300 Accounts Payable 5,600 5,600 Notes Payable (current) 3,400 3,400 The partnership agreement includes the following provisions regarding the division of net income: interest of 10% on original investments, salary allowances of $30,900 (Lang) and $18,800 (Capri), and the remainder equally. 1. Journalize the entries to record the investments of Lang and Capri in the partnership accounts. If an amount box does not require an entry, leave it blank. Apr. 1 Cash ACCOUNT Merchandise Inventory Whitney Lang, Capital Apr. 1 Cash Accounts Receivable Merchandise Inventory Equipment Allowance for Doubtful Accounts Accounts Payable Notes Payable Eli Capri, Capital DEBIT CREDIT 10,300 27,800 38,100 12,800 2. Prepare a balance sheet as of April 1, 20Y1, the date of formation of the partnership of Lang and Capri. Lang and Capri Balance Sheet April 1, 20Y1 Assets 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 Liabilities 5 Current liabilities: Accounts Payable Notes Payable Total liabilities Liabilities Partners' Equity Whitney Lang, Capital Eli Capri, Capital Total partners' equity Total liabilities and partners' equity $ +A 3. After adjustments at March 31, 20Y2, the end of the first full year of operations, the revenues were $436,000 and expenses were $347,000, for a net income of $89,000. The drawing accounts have debit balances of $31,000 (Lang) and $27,000 (Capri). Journalize the entries to close the revenues and expenses and the drawing accounts at March 31, 2012. If an amount box does not require an entry, leave it blank. Mar. 31 Mar. 31 ACCOUNT 4 wwww wwwww www.w DEBIT CREDIT