Entries and Balance Sheet for Partnership

On April 1, 20Y1, Whitney Lang and Eli Capri form a partnership. Lang agrees to invest $13,300 cash and merchandise inventory valued at $35,900. Capri invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring his total capital to $89,000. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow:

	Capri's Ledger Balance		Agreed-Upon Balance
Accounts Receivable	$20,300		$16,400
Allowance for Doubtful Accounts	900		1,100
Merchandise Inventory	23,700		31,800
Equipment	39,900		38,700
Accumulated DepreciationEquipment	13,300
Accounts Payable	7,200		7,200
Notes Payable (current)	4,400		4,400

The partnership agreement includes the following provisions regarding the division of net income: interest of 8% on original investments, salary allowances of $39,900 (Lang) and $24,300 (Capri), and the remainder equally