On January 1, 2020, Ruben Ho and Clay Runnerup formed the Ruben and Clay Partnership by investing the following assets and liabilities in the business: Ruben's Ruben's Clay's Clay's Book value Market Value Book value Market Value Cash $12,000 $12,000 $18,500 $18,500 Equipment 38,000 29,000 53,500 47,500 Accumulated amort.-equipment 8,200 -- 9,900 -- Buildings 84,000 90,000 95,000 110,000 Accumulated amort.-buildings 25,000 -- 35,000 -- Land 60,000 78,000 66,000 80,000 Accounts payable 35,000 35,000 35,000 35,000 Note payable 17,000 17,000 29,000 29,000 An independent appraiser was hired to determine the current market values. Ruben and Clay agree to share profits and losses in a 40:60 ratio respectively. During the first year of operations, the business earned a net income of $47,000. Each partner withdrew $20,000 cash. a) Prepare the journal entries to record the initial investments in the business by Ruben and Clay. b) Prepare a balance sheet dated January 1, 2020, after the completion of the initial journal entries.