pare paes apital Statement for une year 2. A and B decide to form a partnership. A invests $35,000 cash and accounts receivable of $30,000 less allowance for doubtful accounts of $2,000. B contributes $25,000 cash and equipment having a $6,000 book value. It is agreed that the allowance account should be $3,000 and the fair value of the equipment is $10,000 Instructions: Prepare the necessary journal entry to record the formation of the partnership. Joe Mann and Sam Trane operate separate auto repair shops. On January 1, 2012, they decide to combine their separate businesses which were operated as proprietorships to form M &TAuto Repair, a partnership. Information from their separate balance sheets is presented below: Mann Auto Repair Trane Auto $14,000 10,000 500 6,000 3,000 1,500 24,000 4,000 It is agreed that the expected realizable value of Mann's accounts receivable is $11,000 and Trane's receivables is $7,000. The fair value of Mann's equipment is $13,000 and the value of Trane's equipment is $20,000. It is further agreed that the new partnership will assume all liabilities of the Cash Accounts receivable Allowance for doubtful accounts Accounts payable Notes payable Salaries and wages payable Equipment Accumulated depreciation-equipment $10,000 12,000 1,000 5,000 1,000 12,000 2,000 proprietorships with the exception of the notes payable on Trane's balance sheet which he will pay himself Instructions Prepare the journal entries necessary to record the formation of the nartnershin