Prepare entries for formation of a parmership and a balance sheer. Cr. P-2-13 The post-closing trial balances of two proprietorships on January 1.2008, are pre- sented below. Free Company Will Company Dr. Dr. Cr. Cash $ 9.500 $ 6,000 Accounts receivable 15.000 23,000 Allowance for doubtful accounts $ 2.500 $ 4,000 Merchandise inventory 28,000 17.000 Equipment 50.000 30,000 Accumulated depreciation equipment 24.000 13.000 Notes payable 25.000 4.counts payable 20.000 37,000 Free. Capital 31,000 31. Capital 22.000 $102,500 S102,500 $76,000 $76,000 Free and will decide to form a partnership, Free-Will Company, with the following agreed upon 3. uations for noncash assets. Free Company Will Company Accounts receivable $15.000 $23.000 Allowance for doubtful accounts 3.500 5.000 Merchandise inventory 32.000 21.000 Equipment 28,000 18.000 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. Further. it is agreed that Free will invest an additional $3,000 in cash, and Will will invest an additional $13.000 in cash. Instructions (a) Prepare separate journal entries to record the transfer of each proprietorship's assets and li- abilities to the partnership (b) Journalize the additional cash investment by cach partner. (c) Preparc a balance sheet for the partnership on January 1, 2008