Partnership Operation 1. Formation and Operations of a Partnership On June 30, Santa and Claus formed a partnership. 'The partners agreed to invest equal amounts of capital. Santa invested his proprietorship's assets and liabilities as follows: Santa's Book Book Value P 72,000 Fair Market Value P 72,00 10,500 241,000 17,000 276,000 Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory Prepaid Expenses Office Equipment Accumulated Depreciation Accounts Payable . 223,400 17,000 459,000 153,000 191,000 191,000 On June 30, Claus invested cash in an amount equal to the current market value of Santa's partnership capital. Santa, the managing partner, would earn two-thirds of partnership profits. Claus agreed to accept one-third of the profits. During the remainder of the year, the partnership earned P450,000. The temporary withdrawals of Santa and Claus were P352,000 and P230,000, respectively. Required: 1. Journalize the partners' initial investments in a new set of books. 2. Prepare the partnership's Statement of financial position immediately after its formation on June 30. 3. Journalize the entries to close the income summary and the drawing accounts