On October $1,20$Y$7,$ James Johnson and Sammy Swanson form a partnership. Johnson agrees to invest $$30,000$ in cash and inventory valued at $$50,000.$ Swanson invests certain business assets at valuations agreed upon, transfers business liabilities, and contributions sufficient cash to bring Swanson$$s total capital to $$140,000.$ Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow:

Ledger Balance Agreed Valuation

Accounts Receivable $ $43,000$ $ $38,000$

Allowance for Doubtful Accounts $7,0004,000$

Equipment $180,00090,000$

Accumulated Depreciation $$ Equip $100,000$

Accounts Payable $22,00022,000$

Notes Payable $32,00032,000$

The partnership agreement includes the following provisions regarding the division of net income: Interest on original investments at $5\%,$ salary allowances of $$40,000($Johnson$)$ and $$80,000($Swanson$),$ and the remainder equally.

$1.$ Journalize the entries to record the investments of Johnson and Swanson in the partnership accounts.

$2.$ Prepare a classified balance sheet as of October $1,20$Y$7,$ the date of the formation of the partnership of Johnson and Swanson.

$3.$ After adjustments in September $30,20$Y$8,$ the end of the first full year of operations, the revenues were $$670,000$ and expenses were $$400,000,$ for a net income of $$270,000.$ The drawing accounts have debit balances of $$40,000($Johnson$)$ and $$80,000($Swanson$).$ Journalize the entries to close the revenues and expenses and the drawing accounts at September $30,20$Y$9.$