Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to combine their separate businesses which were operated as proprietorships to form M & B Auto Repair, a partnership. Information from their separate balance sheets is presented below:

		Marden Auto Repair		Baker Auto Repair
Cash		$11,000		$15,600
Accounts receivable		13,900		11,300
Allowance for doubtful accounts		1,300		4,500
Accounts payable		5,300		6,300
Notes payable				3,500
Salaries and wages payable		1,300		2,200
Equipment		12,900		23,400
Accumulated depreciationequipment		2,500		4,900

It is agreed that the expected realizable value of Mardens accounts receivable is $12,600 and Bakers receivables is $6,800. The fair value of Mardens equipment is $14,900 and the value of Bakers equipment is $19,900. It is further agreed that the new partnership will assume all liabilities of the proprietorships with the exception of the notes payable on Bakers balance sheet which he will pay himself. Prepare the journal entries necessary to record the formation of the partnership.