Betty Broker operates the Broker Broadcast Company. Her postclosing trial balance on December 31, 2019, is as follows:

Broker agrees to enter into a partnership with Hattie Bingham, effective January 1, 2020. Profits and losses will be shared equally. Broker is to transfer the assets and liabilities of her store to the partnership after revaluation as agreed. Bingham will invest cash equal to one-half of Broker€™s investment after revaluation. The agreed-upon values are Accounts Receivable (net), $19,200; Merchandise Inventory, $368,000; and Fixtures and Store Equipment (net), $352,000. The partnership will operate as the Broker-Bingham Broadcast Company.

INSTRUCTIONS
1. In general journal form, prepare the entries to record the following on the books of the partnership:
a. The receipt of Broker€™s investment of assets and liabilities in the partnership.
b. The receipt of Bingham€™s investment of cash.
2. Prepare a balance sheet for Broker-Borris Bingham Company for January 1, 2020.
Analyze: By what net amount was Broker€™s equity adjusted before the partnership was formed?

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Broker Broadcast Company Postclosing Trlal Balance December 31, 2019 ACCOUNT NAME DEBIT CREDIT 49 6 00 00 48 000 00 Cash Accounts Receivable 9600 00 Allowance for Doubtful Accounts 360|이001 00 480 000 00 Merchandise Inventory Fixtures and Store Equipment Accumulated Depreciation Accounts Payable Betty Broker, Capital 320 000 00 16 0 0 0 00 592 000 00 937 600 00 937 600 00 Totals