On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,960 in cash and merchandise inventory valued at $56,060. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $59,510. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow:     Wallace’s Ledger Agreed-Upon Balance Valuation Accounts Receivable $18,460 $17,560 Allowance for Doubtful Accounts 1,570 1,810 Equipment 83,160 54,420 Accumulated Depreciation 29,820 – Accounts Payable 15,330 15,330 Notes Payable (current) 36,100 36,100         1. Journalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 5   JOURNAL ACCOUNTING EQUATION     DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1                 2                 3                 4                 5                 6                 7                 8                 9                 10                       3. After adjustments at February 28, 20Y9, the end of the first full year of operations, the revenues were $290,170 and expenses were $200,100, for a net income of $90,070. The drawing accounts have debit balances of $28,170 (Keene) and $30,200 (Wallace). Journalizethe entries to close the revenues and expenses and the drawing accounts at February 28, 20Y9. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. If required, round your answers to two decimal places. PAGE 20   JOURNAL ACCOUNTING EQUATION     DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1   Closing Entries             2                 3                 4                 5                 6                 7                 8                 9                   2. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter current assets in order of liquidity. “Less”, “Add”, or colons (:) will automatically appear if required. Enter all amounts as positive numbers.   Keene and Wallace Balance Sheet   1 Assets       2         3         4         5         6         7         8         9         10         11 Liabilities       12         13         14         15         16 Partners’ Equity       17         18         19         20           CHART OF ACCOUNTS Keene and Wallace General Ledger   ASSETS 110 Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 116 Merchandise Inventory 117 Office Supplies 119 Prepaid Insurance 120 Land 123 Equipment 124 Accumulated Depreciation-Equipment   LIABILITIES 210 Accounts Payable 211 Notes Payable 212 Interest Payable 213 Sales Tax Payable   EQUITY 310 Renee Wallace, Capital 311 Renee Wallace, Drawing 312 Eric Keene, Capital 313 Eric Keene, Drawing   REVENUE 410 Revenues   EXPENSES 510 Expenses 521 Advertising Expense 522 Depreciation Expense-Equipment 529 Selling Expenses 533 Insurance Expense 534 Office Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense Labels   Current assets   Current liabilities   For the Year Ended March 1, 20Y8   March 1, 20Y8   Property, plant and equipment   Amount Descriptions   Total assets   Total current assets   Total liabilities   Total liabilities and members’ equity   Total liabilities and partners’ equity   Total members’ equity   Total partners’ equity