Arnold Black and Sam Smith operate separate auto repair shops as proprietorships On January 1, 2021, they decide to combine their separate businesses to form Black Smith Auto Repair, a partnership. Information from their separate balance sheets is presented below Black Auto Repair Smith Auto Repair Cash $ 5,000 $ 10,000 Accounts receivable 8 000 5,000 1 000 500 3.000 6,000 5.000 Allowance for doubtful accounts Accounts payable Notes payable Salaries payable Equipment Accumulated depreciation equipment 1.000 500 12 000 26.000 4,000 2.000 It is agreed that the expected realizable value of Black's accounts receivable is $ 5.000 and Smith's receivables is $ 4,000. The fair value of Black's equipment is $ 15,000 and Smith's equipment is $ 24,000 It is further agreed that the new partnership will assume all liabilities of the proprietorships with the exception of the notes payable on Smith's balance sheet that he will pay himself Required: Prepare the journal entries necessary to record the formation of the partnership