Mo Mulder and Molly Munchkin operate separate hobby shops. On April 8, 2017, they decide to combine their businesses, which had been operated as proprietorships, to form Mo & Molly Partnership. Information from their separate balance sheets is presented below:

Mo's Motor's Molly's Crafts Cash $8,000 $6,100 Accounts receivable 1,300 800 Allowance for doubtful accounts 200 200 Accounts payable 1,550 900 Equipment 2,800 1,400 Accumulated depreciation - equipment 800 500

It is agreed that the expected realizable value of Mos accounts receivable is $500 and Molly's receivables is $450. The fair market value of Mos equipment is $900 and Molly's equipment is $600. It is further agreed that the new partnership will assume all liabilities of the proprietorships.

Prepare the journal entries necessary to record the formation of the partnership.

Determine the partnerships balances in each account immediately after forming the partnership.