Jack Tyler operates a store that sells computer software. Tyler has agreed to enter into a partnership with Oliver Preston, effective January 1, 2019. The new firm will be called Global Computing. Tyler is to transfer all assets and liabilities of his firm to the partnership at the values agreed on. Preston will invest cash that is equal to 80 percent of Tylers investment after revaluation. The accounts shown on Tylers books and the agreed-on value of assets and liabilities are shown below.

				Balances Shown in Tyler's Records			Value Agreed to by Partners
Assets Transferred
Cash				$	35,000		$	35,000
Accounts Receivable	$	108,500
Allowance for Doubtful Accounts		3,500			105,000			104,000
Merchandise Inventory					345,000			360,000
Furniture and Equipment		110,000						70,000
Accumulated Depreciation		45,000			65,000
Total Assets				$	550,000		$	569,000
Liabilities and Owners Equity Transferred
Accounts Payable					55,000			55,000
Jack Tyler, Capital				$	495,000		$	514,000

Required:

1. Prepare the general journal entries to record the following transactions in the books of the partnership on January 1, 2019:

1. Receipt of Tylers investment of assets and liabilities.
2. Receipt of Prestons investment of cash.

2. Prepare a balance sheet for the partnership as of the beginning of its operations on January 1, 2019.

Analyze: Based on the balance sheet you have prepared, what percentage of total equity is owned by Jack Tyler?