Juris Hingco, proprietor of Ozamiz Concrete Products and Efren Barillo, proprietor of Misamis Lumber Yard have agreed to merge their business under new name of "Misamis Construction supply" to gain strength in a more competitive business situation. The following were the account balance as of June 30 , 20B when they shifted from sole proprietorship to partnership. They agreed to adjust their respective sole proprietorship books as follows: a. Their respective accounts receivable should be written off in the book prior to formation to the partnership. Collection wiH be done by respective sole proprietors. b. Merchandise Inventory of Hingco and Barillo should have a net realizable value of P90,000 and P230,000 respectively. c. The equipment of Hingco should have a net book value of P120,000. Required: a. Compute the capital account balance of Hingco and Barillo prior to partnership formation. b. Adjust the books of Hingco and Barillo to conform with what has been agreed upon. c. Journal entries to record the formation of the partnership. d. Prepare a Statement of Financial Position at the beginning of the peciod