Prepare the entry for (a.) Susan Woodworth's and (b.) Barbara Holly's contributions to form the Woodworth and Holly partnership as of July 1, 20--, using fair market values. The difference between assets invested and liabilities assumed should be credited to each partner's capital account. Neither partner has knowledge of any uncollectible accounts receivable. If an amount box does not require an entry, leave it blank.

On July 1, 20--, Susan Woodworth and Barbara Holly combined their two businesses to form a partnership under the firm name of Woodworth and Holly. The balance sheets of the two sole proprietorships are shown below.

Woodworth's Antiques Balance Sheet June 30, 20 --
Assets			Liabilities
Cash		$7,100	Notes payable	$2,500
Accounts receivable	$4,500		Accounts payable	8,400
Less allowance for bad debts	620	3,880	Total liabilities		$10,900
Merchandise inventory		21,430
Store equipment	$8,200		Owner's Equity
Less accumulated depreciation	1,300	6,900	Susan Woodworth, capital		28,410
Total assets		$39,310	Total liabilities and owner's equity		$39,310

Holly's Unfinished Furniture Balance Sheet June 30, 20 --
Assets			Liabilities
Cash		$4,520	Notes payable	$8,000
Accounts receivable	$3,275		Accounts payable	6,300
Less allowance for bad debts	475	2,800	Total liabilities		$14,300
Merchandise inventory		28,190
Supplies		960
Office equipment	$7,400
Less accumulated depreciation	1,800	5,600
Store equipment	$7,700		Owner's Equity
Less accumulated depreciation	1,500	6,200	Barbara Holly, capital		33,970
Total assets		$48,270	Total liabilities and owner's equity		$48,270

The balance sheets reflect fair market values except for the following:

The fair market value of Woodworth's store equipment is $7,500.

The fair market values of Holly's office equipment and store equipment are $6,100 and $6,800, respectively.