Lucy Loiselle and Abby Ready formed a partnership on March 15. The partners agreed to invest equal amounts of capital. Loiselle invests her proprietorship€™s assets and liabilities (credit balances in parentheses), as follows:

On March 15, Ready invested cash in an amount equal to the current market value of Loiselle€™s partnership capital. The partners decided that Loiselle will earn 70% of partnership profits because she will manage the business. Ready agreed to accept 30% of the profits. During the period ended December 31, the partnership earns net income of $75,000. Loiselle€™s drawings were $43,000, and Ready€™s drawings totaled $29,000.
Requirements
1. Journalize the partners€™ initial investments.
2. Prepare the partnership balance sheet immediately after its formation on March 15.
3. Journalize the closing of the Income summary and partner Drawing accounts on December31.

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Loiselle's Current Book Vals Market Values Accounts receivable. Inventory. Prepaid expenses. ..$12,400 42,000 3,300 Store equipment40,000 Accounts payable20,000) S10,700 38,000 3,100 25,000 (20,000)