Leopoldo Medina owns a chain of merchandising retail business in davao City. Due to his plan of expanding his business, he invites Cyrus Panelo whom he believed could be trusted and could provide the necessary capital build-up. His post-closing trial balance as of December 31, 2021 appeared as follows: Cash Debit 1,050,000.00 Credit accounts Receivable 65,000.00 Allowance for Uncollectible Accounts 5,000.00 Merchandise Inventory 2,350,000.00 Store Equipment 950,000.00 Accumulated Derpeciation Accounts Payable 190,000.00 450,000.00 Medina, Capital 3,770,000.00 4,415,000.00 4,415,000.00 They agreed the following: a. The accounts receivable has an estimated realizable value of 90%. b. Merchandise inventory should have a net realizable value of P2,325,000. c. The store equipment has a fair market value of P850,000. d. Accrued rental of P60,000 should be booked. e. Panelo will contribute sufficient cash to make his capital balance equal to Medina. Required: 1. Journal entries to adjust the books of Medina to conform with what has been agreed upon. 2. Determine the amount of cash that Panelo will contribute to the partnership. 3. Record the contributions of both Medina and Panelo in the new partnership books.