Problem 1-4 (Two Proprietors Form a Partnership) J. Hernandez and O. Bingo have agreed to merge their businesses under a new name "HB Construction". The following were the account balances of each proprietor as of June 30, 2021 prior to the formation of the partnership: Bingo Hernandez Accounts Cash P420,000 P450,000 Accounts receivable 82,000 60,000 Allowance for doubtful accounts 8,500 7,500 Merchandise inventory 100,000 250,000 Equipment 130,000 Accumulated depreciation Equipment 15,000 Hernandez, Capital ? Bingo, Capital ? They agreed to adjust their respective sole proprietorship books as follows: a. Their respective accounts receivable should be written-off in their books prior to the formation of the partnership. Collection will be done by each sole proprietor b. Merchandise inventory of Hernandez and Bingo should have a net realizable value of P90,000 and P230,000, respectively. C. The equipment of Hernandez should have a net book value of P120,000. Instructions: 1. Compute for the unadjusted capital of Hernandez and Bingo. 2. Prepare the journal entries to record: a. The adjustments in the books of Hernandez and Bingo. b. The closing entry in the books of Hernandez and Bingo C. The opening entries in the books of the partnership to record the investments of Hernandez and Bingo