Partnership Formation - A Sole Proprietor and an Individual with No Business Instructions (Total of 40 points - 1 point for each correct account title and 1 point for each correct amount): 1. Prepare the journal entries in the books of Lopez. 2. Prepare the opening entries in the books of the newly formed partnership. On February 8, 20X1, Lopez and Buenafe decided to form a partnership to divide business profits in the ratio of 60:40, respectively. Lopez currently has a retailing business, while Buenafe has no business. Lopez decided to contribute the assets and liabilities in her current business to the partnership. The statement of financial position of Lopez is as follows: Lopez and Buenafe agreed to the following conditions before the partnership formation. a. The accounts receivable of Lopez are estimated to be 60% collectible. b. The accumulated depreciation of the equipment will be increased by P20,000. c. The partnership will assume the accounts payable. d. The partnership's capital will be based on its adjusted capital balance of Lopez. Buenafe will contribute cash to make the partners' capital balances proportionate to the profit and loss ratio