Jazha and Ramielle decided to form a partnership named JR Interiors on August 15, 2014. It was agreed that Jazha will contribute cash of P500,000 and equipment that has a book value of P400,000. Ramielle, on the other hand, contributed land with a fair value of P1,000,000; building of P500,000; and, cash of P100,000. The partnership agreed that the equipment of Jazha will be recorded at P500,000 and the mortgage of P200,000 related to the building contributed by Ramielle will be assumed by the partnership. Required: 1. Record the contribution of Jazha and Ramielle in the books of the partnership. 2. Prepare the new partnership's Statement of Financial Position as of August 15, 2014.