Entries and Balance Sheet for Partnership On April 1, 20Y1, Whitney Lang and Eli Capri form a partnership. Lang agrees to invest $9,200 cash and merchandise inventory valued at $24,800. Capri invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring his total capital to $62,000. 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 $14,100 $11,400 Allowance for Doubtful Accounts 600 800 Merchandise Inventory 16,400 22,000 Equipment 27,600 26,800 Accumulated Depreciation-Equipment 9,200 Accounts Payable 5,000 5,000 Notes Payable (current) 3,000 3,000 The partnership agreement includes the following provisions regarding the division of net income: interest of 8% on original investments, salary allowances of $27,600 (Lang) and $16,800 (Capri), and the remainder equally. Required: 1. Journalize the entries to record the investments of (1) Lang and (2) Capri in the partnership accounts. For a compound transaction, if an amount box does not require an entry, leave it blank. ACCOUNT DEBIT CREDIT Apr. 1 Apr. 1 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, 2011 Assets Current assets: $ Total current assets $ Property, plant, and equipment: Total assets Liabilities Current liabilities: Total liabilities Partners' Equity Total partners' equity Total liabilities and partners' equity 3. After adjustments at March 31, 20Y2, the end of the first full year of operations, the revenues were $473,000 and expenses were $395,000, for a net income of $78,000. The drawing accounts have debit balances of $27,000 (Lang) and $23,000 (Capri). Journalize the entries to close the revenues and expenses and the drawing accounts at March 31, 2012. For a compound transaction, if an amount box does not require an entry, leave it blank. ACCOUNT DEBIT CREDIT Mar. 31 Mar. 31