Answer:
Explanation:
a. The journal entries are shown below:
Cash	$21,060  
Merchandise inventory	$56,290  
              To Eric Keene's Capital $77,350
(To record investment made)
Accounts receivable $17,770  
Equipment $54,190  
Cash (Liabilities - Assets) $40,820  
      To Allowance for doubtful accounts $1,950
      To Accounts payable $14,910
      To Notes payable (current) $35,970
     To Reene Wallace's capital $59,950
(Being capital contribution by Reene wallace is recorded)  
2.
<u>KEENE AND WALLACE
</u>
<u>
Balance Sheet
</u>
<u>
March 1, 20Y8</u>
Assets    
Current Assets    
Cash (21,060 + 40,820)	$61,880  
Accounts Receivable Less Allowance	$15,820  
Merchandise inventory	$56,290  
Total current assets $133,990  
Property, plant and Equipment    
Equipment $54,190	54,190  
Total Assets  	$188,180
Liabilities    
Current Liabilities    
Accounts Payable $14,910  
Notes Payable       $35,970  
Total liabilities       $50,880  
Partner's Equity    
Eric Keene's capital $77,350  
Renee Wallace's capital $59,950  
Total partner's equity  $137,300  
Total liabilities and partner's equity $188,180