On july 1, 20A, Celso sanada sr. and Louie Estrebilla have agreed to form a partnership business engaged in buying and selling of ''tuna'' fish within the vicinity of General Santos City. Their contribution among others included the following:

Sanada Estrebilla

CASH P250,000 P380,000

Frozen Tuna 180,000

Delivery Van 950,000

As agreed, Sanada's ''frozen tuna'' was revalued at P160,000 while Estrebilla's mortgage loan balance of P250,000 for his delivery van was treated as his ''personal'' obligation from Mitsubishi Gensan brance.

Required:

1. prepare two single journal entries recording their respective contribution

2. prepare a statement of financial position as of the date their partnership was formed.