I. On June 1, 2020, Sam and Sab formed a partnership. The firm is to take over business assets, assume liabilities and capital are to be based on the following adjustments: a. Sam and Sab's inventory is to be valued at 32,000 and 24,000, respectively b. A/R of 5,000 in Sam's book and 3,000 in Sab's book are uncollectible C. Accrued salaries of 8,000 for Sam and 10,000 for Sab are to be recognize d. Unused office supplies of Sam amounted to 6,000 while B amounted to 2,000 e. Unrecognized patent of 10,000 and prepaid rent of 6,000 are to be recognized in the book of A and B, respectively Below is the balance sheet of Sam and Sab before formation: Sam Sab Cash 20,000.00 41,000.00 Accounts Receivable 44,000.00 40,000.00 Inventory 34,000.00 20,000.00 Supplies 7,000.00 Equipment 40,000.00 48,000.00 Accumulated depreciation 18,000.00 6,000.00 Total Assets 120,000.00 15,000.00 Accounts Payable 30,000.00 50,000.00 Capital 90,000.00 100,000.00 Total Liabilities and Equity 120,000.00 150,000.00 Required: 1. Prepare the adjusting journal entries. 2. Compute the following balances a. Adjusted Capital Balances of Sam and Sab b. Total Assets of Partnership after Formation c. Total Liabilities of Partnership after Formation