King, Nolen and Gregg agree to form a partnership known as 'The King' company, a new advertising company full of creative ideas and events. Both Nolan and Gregg had their own private businesses before and therefore will join the partnership with their prospective assets and liabilities. King, on the other hand did not have any business before and therefore he will be investing only $200,000 cash into the business. The following table shows the accounts that will be included by Nolan and Gregg into the new partnership: Nolen's Market value Gregg's Market value contribution for Nolen contribution for Gregg Cash $50,000 $60,000 Accounts $5,000 $10,000 payable Inventory $15,000 $17,000 $20,000 $25,000 Accounts $6,000 $3,000 receivable Allowance $2,000 $1,500 for doubtful accounts (ADA) Patent $20,000 Mortgage $15,500 $5,000 payable Equipment $20,000 $17,500 $15,500 $14,350 a) Prepare journal entries to record the formation of The King partnership. b) Prepare T-accounts to record the capital balances of all partners