On 1 October 2015, Dallas Lucas and Suzanne Foreman formed a partnership. Some business assets and the liabilities of Lucas were assumed by the partnership, and these are listed below at both carrying amounts and fair value.

	Carrying amount				Fair value
Cash at bank Marketable securities Accounts receivable Inventory Equipment Accounts payable	$	28 000 24 000 47 000 122 600 38 500 36 000			$	28 000 26 800 47 000 125 400 230 000 36 000

Foreman contributed a building worth $820 000, land worth $350 000, and a $456 000 mort­gage was taken over by the partnership. They agreed to share profits and losses in the ratio of 1:2. During the first year of the partnership, Lucas invested $60 000 in the business and withdrew $45 000. Foreman invested $115 200 and withdrew $17 200. The partnership had a profit of $88 460. Retained Earnings accounts are not used.

Required

A.    Prepare the journal entries to record the initial investments of both partners. (Ignore GST.)

B.    Prepare a balance sheet as at 1 October 2015.

C.    Prepare a statement of changes in partners’ equity for the year ended 30 September 2016.