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 and on the next page.

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

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

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

REQUIRED

Prepare the opening entry for the formation of 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 accountsreceivable.

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Woodworth's Antiques Balance Sheet June 30, 20 - Assets Liablities $7100 00 Notes payable S2 50 0 00 8 40|0 00 Cash sa s0 00 Accounts feceivable Accounts payable 6 20 00| 38 80 00 Tatal liabilities 21 430 00 $10 9 00 0 Less allowance for bad debts Merchandise inventoly 58 200 00 Stofe equipment Less accumulated depreciation Owner's Equity 1300 00 6 900| 00 Susan Woodworth, capital $39 3 10 00 Total labilities and owner's equity 28 4 10 00 $39 3 1000 Total assets Holly's Unfinished Furniture Balance Sheet June 30, 20- Assets Liabilities $ 45 20 00 Notes payable $8 000 00 6 300 00 Cash $3 2 75 00 Accounts payable Accounts feceivable 475 00 2 800 00 Total liabiities 28 190 00 960 00 $14 30000 Less allowance for bad debts Merchandise inventory Supplies Office equipment $7 400 00 130 0 00 $7 700 00 1500 00 5 6 00 00 Less accumulated depfedation Stofe equipment Owner's Equity Less accumulated depfedation 6 200 00 Barbafa Holly, capital $48 270 00 33| 97|000 $48| 27000 Total assets Total liabilities and owner's equity