Sofina Ali and Tristan Filippidis agreed to form a partnership by combining their businesses. The fair value and the carrying amount of the assets contributed by each partner and the liabilities assumed by the partnership are shown below.

Required

(a) Prepare separate journal entries to record the initial investment of each partner, assuming assets are recorded by the business to reflect their purchase price, and the arrangement is GST-free.

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Sofina Ali Carrying Fair value Carrying Tristan Filippidis Fair value amount amount Cash at bank $26 140 $26 140 $ 22 590 $ 22 590 Accounts 53 960 53 960 44 400 44 400 receivable Inventory 92 740 90 640 72 000 71 300 Equipment 303 530 202 350 292 160 124 650 Accumulated (78 410) (103 230) - depreciation equipment Accounts 56 490 56 490 49 860 49 860 payable