On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,900 in cash and merchandise inventory valued at $55,950. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $60,390. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow:

	Wallaces Ledger	Agreed-Upon
	Balance	Valuation
Accounts Receivable	$19,370	$18,480
Allowance for Doubtful Accounts	1,240	1,520
Equipment	83,050	54,330
Accumulated Depreciation	29,920
Accounts Payable	14,980	14,980
Notes Payable (current)	35,860	35,860

The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,800 (Keene) and $30,590 (Wallace), and the remainder equally.

	Required:
1.	Journalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts.*
2.	Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace.*
3.	After adjustments at February 28, 20Y9, the end of the first full year of operations, the revenues were $298,300 and expenses were $208,700, for a net income of $89,600. The drawing accounts have debit balances of $27,870 (Keene) and $30,730 (Wallace). Journalizethe entries to close the revenues and expenses and the drawing accounts at February 28, 20Y9.*