COMPLETEE ANSWERE PLEASE

AND WITH EXPLANATION.

2. Requirements :

Prepare the necessary journal entries in the books of Karen.

Prepare the opening journal entries in the books of the partnership.

A sole proprietor and an individual with no business form a partnership On April 8, 2021, Karen who has her own retail business and Mae, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Karen is as follows: Karen Marketing Statement of Financial Position April 8, 2021 Assets Cash 4,000 Accounts Receivable 160,000 Less: Allowance for Uncollectible Accounts 16.000 144,000 Inventory 200,000 Equipment 50,000 Less: Accumulated Depreciation 10.000 40.000 Total Assets 388 000 Liabilities and Capital Accounts Payable 36,000 Karen, Capital 352.000 Total Liabilities and Capital 388.000 Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Karen is estimated to be 70% realizable. b. The accumulated depreciation of the equipment will be increased by 10,000. .The accounts payable will be assumed by the partnership. d. The capital of the partnership is based on the adjusted capital balance of Karen. Mae is top contribute cash in order to make the partner's capital balance proportionate to the profit and loss ratio. Required: 1. Prepare the necessary journal entries in the books of Karen. 2. Prepare the opening journal entries in the books of the partnership.Part 3 - A sole proprietor and an individual with no business form a partnership Primo operated a specialty shop that sold the fishing equipment and accessories. His post-closing trial balance on December 31, 2021 is as follows: Primo Post-closing Trial Balance December 31, 2021 Debit Credit Cash 36,000 Accounts Receivable 150,000 Allowance for Uncollectible Accounts 16,000 Inventory 440,000 Equipment 135,000 Accumulated Depreciation 75,000 Accounts Payable 30.000 Primo, Capital 640,000 Primo plans to enter into a partnership with trusted associate, Binos, effective January 1, 2022. Profits and losses will be shared equally. Primo is to transfer all assets and liabilities of her shop to the partnership after evaluation. Binos will invest cash equal to Primos investment after revaluation. The agreed values are as follows: accounts receivable (net) 140,000; inventory 460,000; and equipment (net) 124,000. The partnership will operate under the business name of Primo and Binos Partnership. Required: 1. Prepare the opening journal entries in the books of the partnership. 2. Prepare the partnership's statement of financial position as at the date of formation of the partnership