Loiselle and Randall formed a partnership on March 15, 2018.

Loiselle and Randall formed a partnership on March 15, 2018. The partners agreed to contribute equal amounts of capital. Loiselle contributed her sole proprietorship's assets and liabilities (credit balances in parentheses) as follows:
Loiselle's Business Current Market Value Book Value Accounts Receivable $ 12,700 44,000 $ 10,400 Merchandise Inventory P

On March 15, Randall contributed cash in an amount equal to the current market value of Loiselle's partnership capital. The partners decided that Loiselle will earn 60% of partnership profits because she will manage the business. Randall agreed to accept 40% of the profits. During the period ended December 31, the partnership earned net income of $79,000. Loiselle's withdrawals were $41,000, and Randall's withdrawals totaled $29,000.
Requirements
1. Journalize the partners' initial contributions.
2. Prepare the partnership balance sheet immediately after its formation on March 15, 2018.
3. Journalize the closing of the Income Summary and partner Withdrawal accounts on December 31, 2018?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...