Formation and allocation of profits - method 1 Francine Steele and Shaun Dunn formed a partnership on 1 July 2019. Some of Steele's business assets and liabilities were assumed by the partnership, and these are listed below at both carrying amounts and fair value. Carrying amount Fair value Cash at bank $62,000 $62,000 Accounts receivable $34,000 $34,000 Inventory $98,600 $96,000 Equipment $320,000 $360,000 Accounts payable $24,000 $24,000 Loan $80,000 $80,000 Dunn contributed a commercial property to the partnership that had a fair value of $670 000 which was financed by a mortgage of $220 000. They agreed to share profits and losses evenly. During the first year of the partnership, Steele invested $80 000 in the business and withdrew $20 000. Dunn invested $82 000 and withdrew $24 000. The partnership had a profit of $132 800. Retained Earnings accounts are not used. Required 1. Prepare the general Journal entries to record the initial Investments of both partners (assume no GST). 2. Prepare a balance sheet as at 1 July 2019. 3. Prepare a statement of changes in partners' equity for the year ended 30 June 2020