John Landis and Raymond Oliver formed a partnership on 1 July 2019, agreeing to share profits and losses in the ratio of 2:1. John contributed $30 000 in cash and land with a fair value of $180 000. Assets contributed to, and liabilities assumed by, the partnership from Raymond's business at both carrying amount and fair value are shown below.

Carrying amount

Fair value

Cash at bank

$ 22500

$ 22500

Accounts receivable

12800

12800

Inventory

24600

23800

Office equipment

76000

62000

Accounts payable

11500

11500

Bank loan

18000

18000

During the first year, John contributed an additional $12 000 in cash. The partnership's profit was $56 000. John withdrew $8000 and Raymond withdrew $16 000 in expectation of profits (ignore GST).

Required

1. Prepare the journal entries to record each partner's initial investment.
2. Prepare the partnership's balance sheet as at 1 July 2019.
3. Prepare statement of changes in partners' equity for the year ended 30 June 2020, using method 2 for recording partners' equity accounts.